(1) Explain in your own wordsthe following concepts in terms of Partnership Law -

(i) "Carrying on of business"

(ii) Conducting a "business in common"

(2) Identify at least three main attributes of a Partnership?

(3) Explain in your own wordsthe relevance of "profit sharing" when determining the existence of a Partnership?

(4) Explain in your own wordsthe concept of "joint and several liability" and identify instances when such liability arises in a Partnership?

(5) Explain in your own words the concept of "fiduciary duty" as applied to a Partnership?

EXERCISE 2

A.Johnson Dwayne Partners & Co.

Smith Johnson and Tommy Dwayne are partners in a Partnership Firm registered under the Partnership Act of the nation of Foxtrot. Au Bon Marche (ABM) has a wholesale cement manufacturing business. Mr. Dwayne approves the purchase on credit 10,000 tonnes of cement from ABM. This 10,000 tonnes of cement was used to build properties in Palms Estate. Proceeds and profits from the sales of properties, leases and rent from the properties in Palms Estate are 80% of the Firm -Jonson Dwayne Partners & Co.

Tropical cyclone Pam hits Foxtrot Islands, most of the properties in the Palms Estate became undervalued and thus were all sold to foreign investors undervalue of the market price of equivalent properties around the world. Palms Estate business became bankrupt. Following which, 80% of Palms Estate property business proceeds no longer goes to the Firm. ABM sues for the credit of the cost of the 10,000 tonnes of cement. The Firm does not have enough money in cash and kind to satisfy the debt.

Issue in question is whether ABM can claim credit covering which particular assets? Think about how the liabilities and assets will be required to meet the debts of creditors in a partnership. Advise by using your statutes and common law of partnership.

Please advise ABM in light of the notes and readings in week 4 topic.

B.Advice whether the following arrangements are valid under a partnership and why?

1)Sarah is a partner with Sally and she assigns their partnership's account in ANZ in trust for one of their Partnership's creditor.

2)Sarah then sells the copyright of the Partnership toAmazon Drugs Manufacturing PTY Ltd.

3)Sally submits a partnership claim to arbitration.