LAW

Legal Investment Issue

Legal Investment Issue

Introduction

Business faces many legal issues, mainly these legal issues takes place because of financial issues, moreover, to deal with numerous factors it is important to consider the size of business or industry, other than this business faces serious financial challenges, there are certain elements which comes under the general categories of every business.

One of the difficult things faced by business includes getting customers and retaining clients, with the help of this business receive payments, which helps them to avoid challenges and result in strong financial health. For avoiding legal and financial challenges, firm should develop methods of good collections that can set up clear expectation of payment in written contracts. Business should screen customers and clients before extending credit or payment terms.

Discussion

Part A)

Answer A)

This paper will outline legal issues associated with case, Pierre and jean potential liability includes less benefits as they are not experience they owe fund amount to Bruce, moreover their investment in Orchard Clothing caused them loss as they are less experienced and they are not able to take potential investment decisions, in orchard clothing they have faced loss due to the various other high street shops, who offers different clothing ranges at very cheap rate, initially orchard was performing good but later on their position was bad as they faced severe losses which resulted in halved trust and fund investment. On the other hand, Jean and Pierre also facing trouble from their saving account where they have deposited money, they interest is accruing slowly and providing no benefits to them, instead their cost increasing, bank have set up certain questions for their customers, investments in money is not covers the ethical context .

Answer B)

In my view it is not in the duties and power of Pierre and Jean to act upon and appoint an investment manager for implementing investing strategies, to overcome the associated risk with trust funds, however their decisions for appointing professional fund manager is correct, with the help of fund manager both can manage portfolio of trading activities including high street bank and orchard clothing. Pierre and Jean realized that they have not enough experience for making investment decisions, but restricting fund manager rights to take decision can affect them, as they have outline the plan what they would like him to do.

Part B

In common law legal system, trust is a relationship where property intangible or tangible is held upon one party for benefit of another, in this case party which will provide benefit to other is Jean, she can create trust of property, without making any transfer to another person, it can be done by declaring that property will be used for the benefit of beneficiary. Jean has a very noble cause for setting up a separate trust; with the help of associated fund she can run valid charitable trust, moreover petition from government can help jean to increase the benefits for single this can help jean in providing charitable status to her ...