Ilac Essay

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ISSUES: Under the Partnership Act 1891 (Qld): 1. Does a partnership exist between Bella and the founders of Magic Zillions- Ed, Jake and Charlie? 2. Can the defendant, Magic Zillions, be held liable for the plaintiffs, Mr Laurent’s, injuries? 3. If so, are magic Zillions liable for any of Mr Laurent’s injuries? 4. Is Bella liable for any of Mr Laurent’s injuries? LAW: Statute: Partnership Act 1891 (Qld) s5: Carrying on a business with a view of profits s6: Determining the existence of partnerships s8: Power to bind firm s12: Liabilities of partners s13: Liability of the firm for wrongs s20: Liabilities of incoming partner Common Law: Canny Gabriel Castle Jackson Advertising Pty Ltd v Volume Sales Pty Ltd (1974) – ‘carrying on a business in common with a view of profit’ Khan v Miah (2000) - ‘a view to profit’ Molinas v Smith (1932) - ‘binding on partnerships.’ Polkinghorne v Holland (1934) - ‘partners liable joint and severally’ Lloyd v Grace, Smith & Co (1912) - ‘partners liable joint and severally’ APPLICATION The Partnership Act defines a partnership as “the relation which subsists between persons carrying on a business in common with a view of profit”. Partnership can arise where people enter into a joint venture in respect of a single undertaking or endeavor. This legal principle was originally developed in Canny Gabriel v Volume Sales, where the High Court held that the joint venture was a partnership, as further profits were to be shared equally. In this hypothetical, Bella after being recruited to join the firm, even though there had been no separate agreement as to how profits or losses would be shared, is clearly in a partnership with Magic Zillions. In Khan v Miah the courts rules that a partnership commences when the proposed partners take the first step to implement their business plan. In the hypothetical Bella has joined

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