Part B: Problem Based Questions (15 marks)

Answer both problem questions following the ILAC method of answering legal problem questions.

Question 1: (7 Marks)

Marc decided to formed a new band, "The Country Boys". Marc encouraged his friends Fred and Eddie to join the band. Fred, who played the guitar well agreed to join the band as the lead guitarist. Eddie, a keen drummer agreed to joined the band and played the drums. Marc was the band's lead singer and manager. Marc paid for all the costs involved in establishing the band. Fred and Eddie chose to be paid a fixed fee for each performance. The Country Boys became a really popular band after performing in a few live concerts at different music festivals and pubs around Australia. Marc managed the contracts for the band's performance at the festivals and clubs. After performing for a year in Australia, the band was contacted by Sunny OZ Music to record an album of the band's songs and music. Marc negotiated a contract to release an album with Sunny OZ Music Fred was away overseas when the contract was signed by Marc as the band's manager. On returning from overseas, Fred and Eddie claimed that they were partners in the band and was entitled to a share of the profits. There was no written contract on the distribution of profits between Marc, Fred and Eddie when they formed the band.

Explain whether a partnership exists between Marc, Fred and Eddie under

partnership law. Refer to relevant case law and statute law to support your answer.

Question 2: (8 marks)

Joy has been running a small business growing organic vegetables on his farm and sold the produce from his farm at the farm gate and at Sunday markets. In 2019, on the advice of his accountant, Joy formed a company called Joy's Organic Produces Pty Ltd (Organic Produces). Joy had always bought his seeds and seedlings from New Agri Ltd (New Agri) and he was well known to New Agri because of his poor credit record. When Organic Produces was formed, Joy told New Agri that it was now dealing with the company, Organic Produces. However, he did not make any changes to the way in which he carried on the business. Joy owned the farm and used the company's truck for deliveries. Organic Produces did not pay any rent or wages to Joy. The income from the sale of the farm's produce and payments to suppliers were paid into and from Joy's personal bank account. Organic Produces did not lodge any tax returns in 2020 and 2021. and Joy himself did not submit his tax returns for some years. New Agri eventually 4 | P a g e

sued Organic Produces to recover the debt of $10,000 owed by Organic Produces to New Agri and sought to add Joy as a defendant in the action against Organic Produces.

What legal grounds could New Agri rely on to support its claim to have Joy added as a defendant in its action?