John, Lesa, and Tabir form a limited liability company. John contributes 60% of the capital, and Lesa and Tabir each contribute 2%. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60% of the profits, in accordance with his contribution. Lesa and Tabir, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue.

• Use the IRAC structure to identify issues and apply law and facts to the case. The IRAC method has four steps:

1. Identify the issue.
2. Relevant law - Here you need to explain the law, not just state it. This could be sections/s of the Corporations Act or case law.
3. Application to the facts - the law is applied to the facts of the problem.
4. Conclusion

• What law will the court apply?
• In most states, what will result?
• How could this dispute have been avoided in the first place?