Blw17 - Business Law Assessment Answer

Assignment Task:

Ben binds the firm without a mutual consensus of his co-partners, Adam & Charlie.

Law:

• A partnership is a set of at least two or more individuals, who legitimately possess a business or work together. Each partner is completely at risk for business obligations. One of the lawful outcomes of the organization is a shared obligation: each partner is both the head and the administrator of different partners. In the event that there are deficient affiliation resources for the organization to pay its obligations and meet its various liabilities of the accomplices must contribute their own special resources and assets (James 2016, p.552).
• The case is in line with SECT 5, 2-(a) & (b) “Power of partner to bind the firm”, Partnership Act 1891 (SA) Cox v Coulson [1916] 2 KB 177 Partnership liability to pay the debts. Partnership according to the law followed Act 1891 (SA) is not a complex format, which is governed by the relevant Act of the concerned state. It depends on the mutual agreement of the parties concerned.

2 (a): The general partner so acting to represent the firm in a specific issue.

2 (b): The individual with whom the general partner has no position or doesn't have the foggiest idea or accept the general partner to be a general partner Khan v Miah [2000] the court will take a gander at the means of the parties have taken in advance with a perspective of making extreme benefit (James 2016, p.560).

Application:

• A mutual agreement between three stakeholders Ben, Adam & Charlie was signed. They run a restaurant under their supervision name as “Gourmet Table” Whywalt Pvt. Ltd. Davison [1997].
•  Adam and Ben visit the furniture shop and they select some items on mutual agreement. Adam leaves for the holidays. Ben follows up with the Best Restaurant Buys and upon his visit to the shop that he finds the furniture outdated. Ben select different chairs to the ones originally being ordered without informing Adam and Charlie about the changes and the new chairs were five times overpriced which has crossed their set budget Christie Owen & Davies plc v Raobgle Trust Corporation [2011] purchasing goods for future development which all partners agreed to engage.
• Adam arrives from holidays, he and Charlie found the bill and they questioned Ben, why he had made changes to the original order without their authorization and in doing so he is liable to pay the additional amount out of his pocket as the business is generating low income and not enough funds are leftover. Charlie also denies saying he was not aware of the changes either, so he wouldn’t contribute to extra charges. 
• According to the Partnership Act 1891 (SA), Ben has the contractual capacity to follow up in the interest of different partners. Being an equivalent partner, Ben carrying on a business and changes the request with a view of betterment to the business. Hence, Ben disagrees with both partners and proclaims that he acts as a fully responsible partner.  Thus, Adam and Charlie cannot force Ben to pay the extra cost legally and therefore, Ben rejects their claim (James 2016, p.554).

Conclusion:

Thus, Ben is legally entitled to refuse to pay the extra cost by himself only and this would refer as a mutual liability. Therefore, the dues will be paid from the partnership funds or all partners are personally liable for the payments of Best Restaurant Buys.

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