Answer problem questions following the ILAC method of answering legal problem questions.

Question 1: Advise the parties whether a partnership exist between them in the following situations: a) In June 2020, Alice and Bob launched an e-commerce business to sell healthy food recipes. Alice was the content creator and Bob provided his time and skills to develop the website. They approached their wealthy friend Oscar to contribute to the business and Oscar decided to pay $50,000. Oscar was a financial analyst in a public listed company and was not involved in the day-to-day operation of the business. However, he advised Alice and Bob to consult him before making any management decisions and send him the books of account for audit purposes. Oscar wanted to double his investment within a year. There was no written agreement between Alice, Bob, and Oscar. (2.5 marks)

b) Joanna and Faye planned to start a conveyancing business together. Joanna secured a premises to set up the business and purchased necessary office furniture from IKEA. Faye mobilised her referral network to generate work and started to receive a number of queries. Unfortunately, before the official commencement of the business, Joanna was declared bankrupt and dropped the plan of doing business with Faye. Creditors wanted to pursue their claims against Faye for all the debts Joanna incurred for the business. (2.5 marks)

c) c) Gibran worked in a suburban boutique law firm as a graduate lawyer under the 4 | P a g e supervision of Mr. Delosa, the principal of the firm. Because of his passion for law and hardworking attitude, Mr. Delosa liked Gibran and called him "partner". Gibran received a share of the annual profits of the business as an encouragement on top of his monthly salary for his work in the firm. (2 marks)