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Read the following mini cases and then indicate the legal position involved: 1. Joseph Kumar invests Rs. 400,000 in a small manufacturing plant which he
Read the following mini cases and then indicate the legal position involved: 1. Joseph Kumar invests Rs. 400,000 in a small manufacturing plant which he runs himself. Kumar is not really cut out for shop work and the business runs heavily into debt. He finds to his horror that his creditors are asking the court to order him to sell his own private house to meet his debts. Is this a risk which Kumar might face? 2. Linda Brasier and Christine Benton form a partnership and open a shop known as Canterbury Fashions, selling women's fashion clothes. Unknown to Linda, Christine orders very large stock from SE Clothing Products Ltd. and the partnership fall heavily into debt. SE Clothing Products Ltd. have not been paid and sue the partnership, Canterbury Fashions, but Linda refuses to be held liable, saying that she did not agree to the order from SE Clothing Products. Is Linda liable? 3. Desert Safari and Touring Co. Ltd. was set up to provide tours in Northern Emirates to UAE visitors. The managing director decides to develop a road haulage sideline and order two wagons for Dhs.600,000 from Al Sayeer Enterprises Ltd. The vehicles are delivered but the Dhs.600,000 is never paid. Desert Safari and Touring claims that the contract is void because it is ultra vires. 4. David Stuart, managing director of Smalldale Engineering Co. Ltd., is sued in the courts for recovery of debts incurred by the company. Advise David as to whether he would need to pay. 5. Mr. Jahufar has no faith in banks. He developed the habit of keeping his savings in his house. In once occasion he hid banknotes in a biscuit tin in the roof of his house. He sold the house to Mr. Zaki, one of whose workmen discovered the money. Mr. Jahufar claimed his money back but Mr. Zaki refused saying that the old owner has no right to whatever thing in the house. Mr. Jahufar decided to take the case to the court. B)Briefly answer the following questions: (i) What is the minimum and maximum number of partners allowed in a partnership? (ii) In the memorandum of association of a company, what do you understand by the term 'objects' of a company? (iii) Name two differences between a public and private company? (iv) Explain the ways in which a partnership can be dissolved. (v) Explain what is meant by 'unlimited liability'. (vi) What are the advantages and disadvantages of sole proprietorship
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