Imagine that after graduating from MIT with your Bachelor of Accounting degree you start your own office as an accountant. Soon after, two of your friends, Soham and Bibek who also studied at MIT approached you to ask if they could share the spare space in your office to see their own clients. Soham and Bibek both are qualified as Financial Advisers. Soham and Bibek initially paid rent to you but when the lease was renewed, you included them in the new lease for the office premises.

You renamed your office as 'Friends Financial Services (FFS)' and refurbished it at a total cost of $21,000. You, Soham and Bibek contributing equally. You also decided to pool the income from the whole operation and share the pool in the following way:

Soham 35%

Bibek 25%

Yourself 40%

You and Soham attend the office fulltime, but Bibek attends the office only on Fridays, during the other week days he works from home as he has a young family.

Over the first two years FFS did very well but for the past year following a renowned chain branded financial service provider setting up a branch close to your office, your business has declined. FFS now has an outstanding debt of $100,000 in the form of rent owed, outstanding utility bills and loans from a bank. You all are now seriously thinking of closing down your business.

However, in the meantime you receive a letter from Jenny a client who expressed her disappointment about a delay in providing your professional services. She has also pointed out that while an advertisement for FFS promises to provide fast services by a team of three accountants, only one is actually a qualified accountant. Jenny has threatened to take legal action against FFS.

Jing, another of your clients, shares with you that his elderly parents who migrated from China recently and have little English language skills borrowed money from the Super Money Lenders Pty Ltd without his knowledge. Jing thinks that Super Money Lenders has charged an exceptionally high interest rate on the loan and some terms are very unfair. Jing wants to know if the loan contract can be avoided.

Also, Bibek who mainly works from home recently sent an email to a local Electronics shop requesting they supply 3 computers and a printer worth $9,000. Bibek has not received any reply yet.

Answer all 4 questions below:

a)What business structure do you think has been used for the operation of FFS? Justify your answer with knowledge you acquired from the topic "Business Structure". In the event that the business closes down, if Bibek and Soham are financially unable to contribute to repaying the outstanding debts, how much can the creditor recover from you?

b)Which legislative provision do you think Jenny may rely on to take an action against FFS for the inaccurate advertisement? What may be the consequences if Jenny's action is successful?

c)Explain the most appropriate principle of contract law that Jing's parents may rely on to challenge the validity of the loan contract? You are not expected to refer to any statutory law (legislation) in your answer.

d)To avoid incurring further liability, what can you do to cancel the order placed by Bibek? Would your answer be different if Bibek has already received an email from the Electronics shop but has not retrieved the email yet? Refer to the relevant provisions of the Electronic Transactions Act 1999 in your