Business Entities ( 2000 words )

COURSEWORK CASE STUDY Case study (2000 words) Wei Li has just moved to Edinburgh, and has brought 1,000,000 to start a business. She meets Angus who has just graduated from Heriot Watt University. He is interested in starting a company to connect local businesses struggling in Covid lockdowns to sell their wares online and facilitate delivery of their products to customers. Wei Li and Angus launch Scotazon.com, a platform for local businesses to advertise and sell their products online and deliver them to customers. Wei Li has invested 500,000 in the business, while Angus creates the program and negotiates with the local businesses to join the platform. Once they launch Scotazon.com Angus' friend Karim who is looking for work approaches Wei Li and Angus. Angus agrees to pay Karim 10 an hour to deliver products to the customers using a new transport van Wei Li and Angus have just acquired. Wei Li and Angus have also purchased a house together to live in to avoid expensive rent. Wei Li has contributed 300,000 to the purchase of the house, while Angus is paying the mortgage on the house for the remaining 300,000 of the house price. Wei Li and Angus are so busy launching their new platform that they don't think about the legal structure of their business. After operating for a year with stunning success they approach you to advise them about the legal implications of the business. Angus has defaulted on 4 months of mortgage payments for the house, and Wei Li wants to know whether the partnership will be liable for the payments. They are also concerned as Karim is now claiming that he is a partner and has told Wei Li and Angus that he should be getting a greater share of the profit. Advise Wei Li and Angus of their legal rights and obligations in relation to the partnership and the house, including whether Karim is a partner. In addition, please advise Wei Li and Angus of alternative ways to structure their business. Please limit your discussion to the law of partnership