FUNDAMENTALS OF BUSINESS LAW

Fundamentals of Business Law

Introduction

A partnership is an association or alliance involving two or more individuals with an outlook to make the most of earnings. The partners may form partnership at individual level or at organizational level. The rights and responsibilities of the affiliation are administered by a partnership contract which may be formed in text, in words or by proposition. It is also administered by the Partnership Act. It is suggested that a written contract is better to keep away from disagreements among partners in the near prospect. A partnership steps into a contract in the name of its associates. More often than not every partner is equally and legally responsible for the responsibility under the contract. This paper will employ the Partnership Act 1891 (SA) and any related case regulation, to advise Kadisha, Desiree and Narelle on their particular rights and legal responsibilities in relation to Decor and Letitia actions.

Discussion

Liability of Kadisha, Desiree and Narelle

Every associate in a partnership other than an incorporated limited partnership is legally responsible together with the other associates for all amounts overdue and requirements of the salon earned at the same time as the partner is an associate and (if the partner is alone) after the partner's demise the partner's manor is also severally legally responsible in a due course of management for such amount outstanding and conditions, so far as they stay unconvinced, but matter to the former payment of the partner's separate amount overdue. The Partnership Legal Act takes account of the joint rights, liabilities and responsibilities of the partners, in certain situations; the Partnership Act also forms an obligatory stipulation as considerations to the rights and obligations of associates. When there is no Deed or the Deed is silent on any point, one right and obligations as provided in the Partnership Act shall apply.

Rights in Partnership

Following are the particular rights of Kadisha, Desiree and Narelle in relation to Decor and Letitia.

Partners have the right to perform their task in the routine administration of the Salon

They have rights to be conferred with each other and take notice of any matter concerning the salon functions.

They have right to exercise to books of financial records and claim the copy of the same

Sharing of profit and loss mutually or as settled by the partners at the start of forming a partnership

Rights to get concentration on investment added by the associates to the business.

Rights to gain awareness on advances paid by the associates for salon function.

Right as representative of the organization and implicit authority to unite the firm for any action completed in performing the business functions.

They have legal authority to put off admittance of novel partners or exclusion of present partners.

Responsibilities

They are as follows:

To perform the business functions to the greatest common benefit: Kadisha, Desiree and Narelle, all these partners are legal accountable to perform the salon functions to the greatest common benefit. In other expression, they must bring into play their acquaintance and talent in the functions of business ...