Law60104 Business Law|Organic Skin Assessment Answer
Spencer, Emilyand Ariaentered into a business arrangement to run a large business selling organic skin care products. They decided to name their business as Pretty Face Organics.Spencerand Emilyleft their employment to work full time in the new business. Ariaretained his job but agreed to help lent RM100,000 to the new business venture. It was agreed that Spencerand Emilywould each be paid a salary of RM6,500 a month and Ariawould be paid 4% interest on her loan. The business arrangement was done in writing. It also stated that each of them had invested RM40,000 as capital and that after salaries and interest were paid they would share equally in any profits. Afew monthslater,Emilywho has borrowedsome money in the name of partnership and had absconded without anyone’s knowledge. Describe if the arrangement between Spencer, Ariaand Emilyfulfil therequirements of a partnership and advise the remaining partners as to their liability arising out of Emily’s conduct.Students have to state word count at the end of the assignment The reference list is not included in the word count; however, quotations, case citations, footnotes etc.
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