Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please help me solve this case ? Xynas, Yoda, and Zorro are partners of a prominent stock and station agency firm known as

Could you please help me solve this case ? Xynas, Yoda, and Zorro are partners of a prominent stock and station agency firm known as Miracle Buddies in Griffith, which is located in the south-western part of New South Wales. The business of the firm involves acting as a professional agent for the buying and selling of rural property and livestock and providing property management services in relation to any farming land. Yoda lent $250,000 from his personal account to his daughter, Rosa under a document entitled "Contract of Loan" . Because of his experience working as a paralegal in a law firm, he decided to draft the document himself. The purpose of the loan was to help the new cattle breeding business called Cattle Battle, which Rosa established and operates near Griffith, to purchase new livestock and expand. Yoda did not inform his other partners about this loan. The contract includes the following terms: 1. Yoda and Rosa are not partners and do not intend to be partners. 2. Rosa hereby assigns to Yoda one-third of her interest in Cattle Battle, including the right to receive one-third of Rosa's profits from the business. 3. Rosa shall keep Yoda informed as to the affairs of Cattle Battle and shall consult with Yoda before taking any major decisions concerning the business. 4. To avoid any conflict of interest, Cattle Battle shall transact no business with Miracle Buddies and in particular shall not employ Miracle Buddies as an agent for the sale of cattle or other property. The contract has operated for five years, and Yoda has received considerable profits from it. Answer the following questions: (a) By referring to relevant statutory provisions and case laws, explain whether there is a partnership between Yoda and Rosa in relation to the business of Cattle Battle. (b) By referring to relevant statutory provisions and case laws, explain whether the other partners of Miracle Buddies can bring action against Yoda with respect to any breach of his duties as a partner due to his participation in Cattle Battle

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

More Books

Students also viewed these Law questions

Question

=+What are the outcomes?

Answered: 1 week ago