Question
Viggo is a successful wedding cake maker. He has been running his business 'Viggo's Visions' for 10 years in the Gold Coast Hinterland. He is
Viggo is a successful wedding cake maker. He has been running his business 'Viggo's Visions' for 10 years in the Gold Coast Hinterland. He is so successful that he is often booked out a year in advance as he can only make two cakes per week to his exacting standards. Part A Along comes Molly. She sees an opportunity and offers to invest in Viggo's business. Viggo is understandably cautious and suggests they try this for the spring wedding season (September- October). Molly runs her own catering business in the Currumbin Valley and she agrees to this. They agree Molly will invest $4000 to Viggo's Visions which will enable Viggo to hire an apprentice pastry chef and double his output of cakes. Molly will receive 10% of profits on sales of cakes during that period. In November, Viggo pays Molly $3400 being 10% of profits for the two month period. Molly is mortified. She has gone down $600 on her investment. Viggo explains that perhaps the local market is saturated, and he needs to expand wider into the South East Queensland market. Molly remains miffed and seeks to have an equal account of the profits arguing she is a partner under law. Advise Viggo on the nature of his relationship with Molly referring to appropriate authorities
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