FACTS

Dario and Ellie started a restaurant together. They shared the profits equally. Dario operated the front of house of the restaurant and took the bookings. He also waited on tables. Ellie was in charge of the kitchen and cooking. The restaurant was successful and they decided to expand. Dario had a first cousin called Freddie. Freddie sometimes helped Dario and Ellie out when the restaurant got too busy. He helped by waiting on tables and doing the washing up from time to time. Freddie offered to help expand the business by lending Dario and Ellie $50,000. Freddie said he was too busy to help in the restaurant anymore but the $50,000 could be useful to hire someone part time to help. Additionally, some of the money could be useful to upgrade the cooking facilities to cater for larger group bookings. Freddie did not write anything down but it was agreed between the parties that Freddie would be paid back in equal instalments over a period of the next five years at a rate of $10,000 per year on an interest free basis. Freddie said as he was too busy to be involved in the day to day running of the restaurant, he wanted a report on how the business was running sent to him every 6 months. He also reserved a veto on any major decisions concerning the running of the restaurant until he received his money back in full. Unfortunately, things did not go so well and the restaurant bookings declined rapidly due to COVID-19 lockdowns. The restaurant was unable to pay its bills to its suppliers and suddenly had to close its doors. The suppliers want their money back and want to know who they can sue to get the money that they are owed by the business.

a. What is the relationship between Dario, Ellie and Freddie?

b. Who can the suppliers sue to get their money back?