Question
formatted as a client letter. Bella, Raul and Yong have a small business in Queensland where they provide career advice to people over the age
formatted as a client letter.
Bella, Raul and Yong have a small business in Queensland where they provide career advice to people over the age of 30 on the phone and via zoom. They have a written partnership agreement which states that any money spent on behalf of the business cannot be more than $600 in a single transaction without obtaining the written authority of both of the other partners before the purchase or order.
Business has been going well and the partners are very busy providing career advice. Recently though, Bella has been spending more than the $600 agreed on business costs. Her recent purchase included computer software and online training sessions for herself. Raul and Yong keep reminding her she needs their written authority first but in regard to these items have agreed to pay, telling Bella "that was the last time we will allow you to spend over the agreed amount".
Recently, Bella instructed a marketing consultant to purchase $2000 worth of Facebook advertisements to advertise the business without the other partners knowledge. The marketing consultant advised Bella that if she purchased an extra $1000 worth of advertising, Bella would get a free $500 voucher/coupon to spend at a local clothes shop. Bella told the marketing consultant her other partners would not be happy as she is only authorised to spend $600 without their agreement. However, they both decide to go ahead. Bella then used the voucher to buy the new clothes for herself.
Later that week Bella ordered a new set of office furniture for the business from the local store for $2500. She told the store it was for business use for the partnership.
A few weeks later Raul and Yong kept seeing their services advertised on Facebook and asked Bella how she managed to get so much advertising for $600. Bella admitted the actual cost was $3000 and the invoice was due to be paid now. Bella also admitted that she had purchased office furniture on behalf of the partnership for $2500 which she had stored in the other room.
Raul and Yong are furious. As their diaries were already full of appointments for the next 3 months, they claim the advertising was not necessary as the partners have no availability to provide career advice to any new clients until early next year. Furthermore, attached to the receipt for payment for the advertising is a note from the marketing consultant, saying "I hope you bought that dress you wanted with the bonus purchase voucher."
Raul and Yong come to you for advice. Write a client letter to Raul and Yong to advise:
a) Which bills the partnership is liable to pay and why?
b) If Raul and Yong can claim back the $500 from Bella and why.
c) How Raul and Yong can remove Bella from the partnership as their partnership agreement does not contain any clauses about dissolution or removal of a partner.
Your advice should reference the relevant legislation and legal authority (including around partnership law).
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