QUESTION (To be completed within one hour) Lucas and Peter were university colleagues. They planned to establish an online food ordering business through a developed computer application ('App) called "Eat-Easy as they believe that an online business should fit well with social interaction increasingly being more dependent on the internet. They have a mutual understanding that they will share any profit from the business. Lucas is willing to provide his parents' owned commercial shop as their business office space for a period of two years. Lucas's parents are aware of Lucas's and Peter's business plan and are happy to provide their commercial shop with a low rent of $200 per week as assistance. Also, Lucas will invite two of his good friends, Pat and Monty, who have an extensive network that can assist to advertise their newly developed "Eat-Easy" App, within the Sydney and South Coast regions Lucas promised to Pat and Monty that they would receive 2% of the business' retum if they are able to market the App up to 50 restaurants (as contracted users of the App) every three months. For Lucas and Peter to get the business started they needed $50,000 capital. However, as a result of the nature of the business and the economic climate, they couldn't find a financial institution that was prepared to provide the necessary loan. Rod, a friend of Peter, was prepared to put up the capital if the loan agreement expressly stated that there was not any intention to create a partnership agreement between Rod, Peter and Lucas for the business. The loan agreement further stated that Rod was to have a share of the profit and losses, access to the partnership financial records, and that the loan was not to be repayable until after the dissolution of the business between Lucas and Peter. The food ordering business has been running for 6 months and started to have some success in that 60 restaurants have contracted to use the "Eat-Easy" App. However, Lucas and Peter constantly had disagreements on how to run the business. Peter discovered that Lucas had made a promise to Pat and Monty as to 2% business return arrangement without Peter's consent. Peter was not happy to continue the business with such an arrangement. Lucas also found out that Rod was permitted to share their business profit with the right to access to the business financial records. Lucas totally rejected this arrangement made by Peter Due to a lack of business acumen, Lucas and Peter were eventually declared bankrupt. Rod then made a claim as a creditor. Pat and Monty also requested to have their 2% share of the business' retum paid to them, which was rejected by the trustee in bankruptcy on the basis that Rod, Pat and Monty were partners. In your opinion, was the trustee in bankruptcy correct? Give reasons 1. What form of business organisation has been formed (if any) and between whom? (9 marks) 2. Advise Rod, Pat and Monty as to from whom they could recoverclaim the money and their chances of success in any such action(s). (6 marks)