[1] Reece Jones is a successful small business owner.She owns her own Development Shop call BRISK Software Solutions.

[2] As her business began to grow it become more and more difficult for Reece to manage that growth, so her good friend and RRC fellow grad Oman, agreed to help her.

[4] Oman invested in the business as a limited partner and invested $25,000.This was all the money Oman had or could raise.

[4] Both Reece and Oman were active in making decisions for the business.

[3] Over the year, the business had a great year and Reece paid Oman a share of the profits as per their limited partnership agreement.

[5] Sometime later, Oman entered into a contract with another development company, APEX, to sub out some of BRISK's development work.

[6] It turned out that was not a good choice as APEX's work done for the client was late, sub-standard and rejected by BRISKS client.

[7] As a result, BRISK missed a contractual deadline and is now being sued by the client for $35,000.

Questions:

1.What form of business have Reece and Oman entered into?

2.What Legislation will govern this type of organization?

3.What is Oman's legal status given the pending lawsuit?

4.What is the extent of liability owed by Oman in this situation? Explain as stipulated by the ACT.

5.What is the extent of liability owed by Reece in this situation?