Question 1: (8 Marks) Xynas, Yoda, and Zorro are partners of a prominent stock and station agency firm known as Miracle Buddies in Griffith, which is located in the south-western part of New South Wales. The business of the firm involves acting as a professional agent for the buying and selling of rural property and livestock and providing property management services in relation to any farming land. Yoda lent $250,000 to his daughter, Rosa under a document entitled "Contract of Loan". Because of his experience of working as a paralegal in a law firm, he decided to draft the document himself. The purpose of the loan was to help the new cattle breeding business called Cattle Battle, which Rosa establishes and operates near Griffith, to purchase new livestock and expand. Yoda did not inform his other partners about this loan. The contract includes the following terms: 4 | P a g e 1. Yoda and Rosa are not partners and do not intend to be partners. 2. Rosa hereby assigns to Yoda one-third of her interest in Cattle Battle, including the right to receive one-third of Rosa's profits from the business. 3. Rosa shall keep Yoda informed as to the affairs of Cattle Battle and shall consult with Yoda before taking any major decisions concerning the business. 4. To avoid any conflict of interest, Cattle Battle shall transact no business with Miracle Buddies and in particular shall not employ Miracle Buddies as agent for the sale of cattle or other property. The contract has operated for five years, and Yoda has received considerable profits from it. Answer the following questions: (a) By referring to relevant statutory provisions and case laws, explain whether there is a partnership between Yoda and Rosa in relation to the business of Cattle Battle. (5 marks) (b) By referring to relevant statutory provisions and case laws, explain whether the other partners of Miracle Buddies can bring action against Yoda with respect to his participation in Cattle Battle? (3 marks)

E 15387124 3 / 4 100% + ... Question 1: (8 Marks) Xynas, Yoda, and Zorro are partners of a prominent stock and station agency firm known as Miracle Buddies in Griffith, which is located in the south-western part of New South Wales. The business of the firm involves acting as a professional agent for the buying and selling of rural property and livestock and providing property management services in relation to any farming land. Yoda lent $250,000 to his daughter, Rosa under a document entitled "Contract of Loan". Because of his experience of working as a paralegal in a law firm, he decided to draft the document himself. The purpose of the loan was to help the new cattle breeding business 2 called Cattle Battle, which Rosa establishes and operates near Griffith, to purchase new livestock and expand. Yoda did not inform his other partners about this loan. The contract includes the following terms: 3 | Page 3 1. Yoda and Rosa are not partners and do not intend to be partners. 2. Rosa hereby assigns to Yoda one-third of her interest in Cattle Battle, including the right to receive one-third of Rosa's profits from the business. 3. Rosa shall keep Yoda informed as to the affairs of Cattle Battle and shall consult with Yoda before taking any major decisions concerning the business. 4 To avoid any conflict of interest Cattle Rattle shall transact no business with Miracle Type here to search O Fi Oo 11:07 AM 17'C Cloudy ~ ENG 24/09/202215387124 , Yoda and Rosa are not partners and do not inland to be partners. _ Rosa hereby assigns to Yoda one-third of her interest in Cattle Battle, including the right to receive one-third of Rosa's prots from the business. _ Rosa shall keep Yoda informed as to the affairs of Cattle Battle and shall consult with Yoda before taking any major decisions oonceming the business. _ To avoid any conflict of interest. Cattle Battle shall transact no business with Miracle Buddies and in particular shall not employ Miracle Buddies as agent for the sale of cattle or other property. The contract has operated for live years. and Yoda has received considerable prots from it. Answer the following questions: (a) By referring to relevant statutory provisions and case laws, explain whether there is a partnership between Yoda and Rosa in relation to the business of Cattle Battle (5 marks) (b) By referring to relevant statutory provisions and case laws. explain whether the other partners of Miracle Buddies can bring action against Yoda with respect to his participation in Cattle Battle? (3 marks) I 1 ._.; - 'j . 11:09AM =. /0 Typehereto search 5.\" 0 El : S [i n e f\" 6 m .17C Cloudy A ENG 2410911022 %