(10 marks)

Abe, Bruce and Chris are WSU students. They live in the same neighbourhood and are keen toearn an income in their spare time to finance their studies. Abe has a small truck, Bruce owns alawnmower and Chris has a computer. They print flyers advertising ABC Mowing Services, theirregistered business name, and drop them into local letterboxes. Within a short time, they have a listof regular clients.Bruce cuts the grass, Abe removes the clippings in his small truck and Chriskeeps theaccounts. They share the profits from their business equally, on a monthly basis.

Bruce decides that they needed an industrial ride-on mower and orders one from FastCut Mowersin the name of ABC Mowing Services. Abe and Chris were not consulted about this purchase.

While Bruce and Chris are busy studying, Abe develops a separate business relationship with manyof ABC Mowing Services' clients by removing their rubbish from their property on weekends. Abedoes not disclose these jobs to Bruce and Chris. These clients pay Abe in cash which he depositsinto his personal bank account.

When the bill for the ride-on mower arrives; Chris is particularly upset when he realises there isinsufficient money in the accounts to pay for the ride-on mower.With money being a bit short, Abenow asks Chris for cash on a daily basis to cover his costs for gas and wear and tear on the smalltruck.

Abe, Bruce and Chris only have a verbal agreement to work with each other and share the profitsequally. However they are now having difficulties dealing with each other.

Advise as to what type of business relationship they have with each other and their rights andliabilities to each other and their creditors on the above facts.

NEED ILAC STRUCTURE