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Legal obligations and rights of the parties 8. Sultan and Fahad wants to open a specialized coffee shop. They contributed 20,000 BD and they open

Legal obligations and rights of the parties

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8. Sultan and Fahad wants to open a specialized coffee shop. They contributed 20,000 BD and they open the shop in Muharraq and called it Coffee Station. Sultan contributed 12,000 BD and Fahad contributed 8,000 BD. They worked in the shop and shared control equally. They split all profits and costs equally. Business was a bit slow so Fahad decided to buy 4 motorbikes for 10,000 BD in order that they can deliver coffee to customers. Fahad paid 2,000 BD from the business bank account and Sultan was not aware of this purchase! When Sultan saw the motorbikes he got angry and he said "I did not agree to the purchase of the motorbikes for our business, we don't need them at this stage" The business did not improve and they started to lose money. The motorbikes dealer asked them for the outstanding 8,000 BD and the coffee suppliers asked them to pay 10,000 BD for the coffee they supplied for the cafe. Sultan and Fahad decided that this business in not working and they want to sell it. They sold the business for 60,000 BD which was the return on their capital investment and Fahad wants to keep 3 motorbikes and Sultan will take 1 motorbike. Explain the legal obligations and rights of the parties in the scenario in reference to selling the business for both (Sultan & Fahad). Support your argument with references and cases where applicable

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