Search 17 Individual Assignment Description 13 2020 - Saved to this PC at References Mailings Review View Help Aa A ALT D-A Paragraph AaBbc AaBbcc AaBbCCI AaBbccde AaBbccdc Heading 2 Heading 3 1 Normal Question 1 Questio... Styles Question 1: Peter and Pam run a small plant nursery called Terra Cotta. Peter does not take an active role in the day-to- day management of the nursery and so Peter and Pam have agreed that Peter will only receive 25 per cent of the profits while Pam will receive 75 per cent. They have also agreed that Peter will only be liable for 25 per cent of the costs of the business. No one but Peter and Pam are aware of this arrangement. After some success, the business has suddenly failed and closed down. Pam has withdrawn all the cash from the Bank and gone to Spain. Before leaving, Pam borrowed $10,000 from a finance company, Loans Ltd, at very high interest rates. Pam told Loans Ltd she was authorised by Terra Cotta to borrow the money for the purpose of expanding the business. This was not true. The money disappeared along with Pam. Loans Ltd wants Peter to repay the $10,000. Peter claims that he is not responsible as the money was used for Pam's own purposes. Alternatively, Pam claims that, if he is liable, his liability is limited to $2,500 (that is 25 per cent of the loan amount). Required: Discuss whether Peter is liable to Loans Ltd; and, if he is, how much he must pay to Loans Ltd. You should support your answer with reference to relevant sections of the Partnership Act and, where relevant, to cases. In your answer discuss the elements of partnership. (10 marks) Question 2: a) What is the difference between a corporation and a company Describe how a company is formed. (3 marks) b) Why is Saloman v Saloman & Co Ltd considered such an important case in company law? (3 marks) c) What is meant by the term "lifting the corporate veil", and in what circumstances is it likely that D.Foc