Question : The tasks are listed below: (Total 10 marks)

Tasks 1

Mr. Solomon, an Accountant in profession and Mr. Barratt, a lawyer, he has his own Law office, both are very close friends decided to run a partnership business. Mr. Solomon has invested OMR 200,000 and Mr. Barratt has invested OMR 100,000. As they are good friends, they decided not to have partnership agreement between them. Mr. Solomon had no other side-businesses, and he was fully concentrating on partnership business. But Mr. Barratt continuing his Law profession along with Partnership business and many times he could not visit partnership business because he had to visit court to represent his clients. Mr. Solomon has withdrawn cash OMR 4,000 per month from the partnership business for his personal purposes. But Mr. Barratt used to withdraw OMR 6,000 per month. During the year, partnership business wanted to borrow money from Bank. As it is new business bank refused to give loan saying that business had no track record. But Mr. Solomon had given OMR 40,000 loan to the firm.

After completing the 1st year of work together, partnership made a profit of OMR 60,000. But interest on Mr. Solomon loan is not provided. When sharing the profit Jorum is arrogant and he bargained to get 50% of the profit. But Mr. Solomon is of the view that he should get double of Mr. Barratt because he has invested double amount of Mr. Barratt. Also, Mr. Solomon thought that he will get salary from the partnership because of his full-time work for the partnership business.

You are required to:

Assess and discuss the Partnership law applicable to the above scenario.

Also, demonstrate clearly how partnership business is different than that of sole trader. You can connect the answer to the given scenario wherever possible.

(Maximum 1,500 words)