Question two

Kyle and Jackie are hairdressers. They met during the TAFE Hairdressing course and as both lived in the inner southern suburbs of Adelaide they decided to work together. They had little money of their own and so they invited one of their customers, Lynn, a medical practitioner to join their business. Lynn provided $100,000 to the business. At the end of each week they divide up the 'profit' three ways.

When they first were in business they used their residential flat as the place to perform their hairdressing but as numbers of customers grew they went searching for a suitable shop. Kyle found an ideal commercial space on King William Road at Hyde Park and entered a lease. He signed the lease in his name.

About 4 months after they moved into the new premises Jackie applied some hair dye to Betty, one of their customers and Betty suffers serious burns to her scalp as a result of Jackie's careless actions. Betty is treated at the hospital and is now having 6 monthly visits to a dermatologist and expects that these will continue for the next 5 years. Each of these visits are charged to Betty at $400 per visit.

Kyle is the lead singer in a 80s revival band and given that the band members try to re-create the style of the 80s Kyle uses the premises each Saturday afternoon to attend to all the other band members, blow-drying, cutting and colouring their hair. For this work, he is paid separately by each band member and does not disclose this to Jackie or Lynn.

Answer ALL of the following questions:

Please advise Kyle, Jackie and Lynn on

1. whether they are in a partnership and if so, who are the partners in the partnership - Use the Partnership Act and case law to support your argument
2. if the lease payments for the hairdressing premises fall behind by three months who is responsible to pay these- Use the Partnership Act and case law to support your argument
3. whether Kyle is in breach of his partnership duties as a result of him carrying out his Saturday afternoon hairdressing of his band- Use the Partnership Act and case law to support your argument
4. if Betty wishes to commence a legal action against this business to recover the costs of her specialist visits and hospital fees, how can she discover who the individuals are behind this business -use any legislation or case law to support your argument

if Betty did find out the details of the business proprietors then who would she sue and who would be liable - Use the Partnership Act and case law to support your argumen