Question
add more relevant law and law sections. Also add relevant case law. Issue: Identify the business structure established by Chris, Mia, And Lily for the
add more relevant law and law sections. Also add relevant case law.
Issue:
Identify the business structure established by Chris, Mia, And Lily for the enterprise of WellVibe?
Who is liable for the debt that can be sued by Heather?
Law:
Chris, Mia, And Lily decided to form a health consultancy business together, that indicates the creation of a partnership structure. Once a partnership is structured, each partner has personal liability and responsibility for the obligations and debts of the business. Nevertheless, Chris has chosen to withdraw from the business for personal reasons, and it is essential to assess the repercussions withdrawal on the partnership.
Application:
Despite Chris choosing the withdraw from the business, this does not release him from the pre-existing obligations that have accrued when he was in the partnership. Chrish being a general partner, would share the joint and several liabilities to Heather for the debt that is owed. This implies that any one or more of the partners can be pursued for the debt as Heather has the option to legally do so.
Conclusion:
As Mia and Lily are still in a partnership structure, they still retain the personal responsibilities of the business's commitments, encompassing the debt that is owed to Heather, even though Chris has departed the business. Heather can sue both Mia and Lily.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started