Kath, Kim and Sharon are having coffee after completing the last of their variety dance classes and are complimenting each other on their impressive dance skills. The conversation turns to using their newly acquired expertise to open up a dance studio to teach beginners. They call their business a joint venture and decide that they should run the business in consultation with one another. They agree to share the profits equally and decide that they should all have access to the financial details of the business. Sharon will use the skills she acquired as treasurer of the netball club to run the administrative side of the business, while Kath and Kim will run the boot-scooting and flamenco dance classes.

During the two weeks it took to find suitable premises, the dance trio open up a bank account under the name of Look at Me Dance Studios, and are finally ready for business.

The business has been going well for a couple of months, when Kath decides that the dance floor in the studio she runs the boot-scooting class is not quite good enough. She believes she will get more pronounced kicks from her students if the floor is more highly polished. In the two hours before her class starts, she continually polishes the floor until she has used well over the recommended amount polish for the dance floor. When her students arrive for the class, some of the students express concern about the slipperiness of the floor, but Kath reassures them that the floor is just how it should be and todays lesson is going to be particularly good. However, ten minutes into the dance class, Kel, one Kaths favourite students, does a rather enthusiastic kick and, due to the overly slippery floor, ends up falling rather awkwardly breaking his leg.

a. Does a partnership exist? If so, who are the partners?

b. From whom can Kel obtain compensation for the personal injuries resulting from Kaths negligence? Explain.

c. Kim has been dating Brett for about a year now, and she decides she also wants to go into business with him in another dance studio that is only 2 streets away from the Look at me Dance Studio. Advise Kim.