Mr. Mansell and Mr. Bishop lost their jobs. They agreed to go into business together and form a limited company to run a restaurant. While they were forming the company and before it had received its certificate of incorporation from the Registrar, Mr. Bishop ordered some goods from Spicer’s for business. They also opened a bank account in the name of the company. Prior to the incorporation of the company, Mr. Bishop formed a contract with Spicer as well. Mr. Bishop went bankrupt before Spicer’s had been paid. Spicer’s sued Mr. Mansell on the basis that he was a partner of Mr. Bishop, and since partners are jointly and severally liable for the debts of the firm. Spicer’s team was of the opinion that Mr. Mansell, said should pay and then get a contribution from Mr. Bishop (though it was not too likely that he would) to pay off the debt. A. With reference to the Partnership Act 1890 are Mr. Mansell and Mr. Bishop partners B. Who will the Court hold liable for the debt to Spicer and why? C. In moving forward, advise Mr. Bishop/ Mr. Mansell on FOUR (4) importance of being in a partnership business. D. Partnership is usually dissolved without the help of the court, though sometimes the court is brought in. Discuss TWO (2) ways for a partnership to be non- judicial dissolve.
Mr. Mansell and Mr. Bishop lost their jobs. They agreed to go into business together and form a limited company to run a restaurant. While they were forming the company and before it had received its certificate of incorporation from the Registrar, Mr. Bishop ordered some goods from Spicer’s for business. They also opened a bank account in the name of the company. Prior to the incorporation of the company, Mr. Bishop formed a contract with Spicer as well. Mr. Bishop went bankrupt before Spicer’s had been paid. Spicer’s sued Mr. Mansell on the basis that he was a partner of Mr. Bishop, and since partners are jointly and severally liable for the debts of the firm. Spicer’s team was of the opinion that Mr. Mansell, said should pay and then get a contribution from Mr. Bishop (though it was not too likely that he would) to pay off the debt.
A. With reference to the
B. Who will the Court hold liable for the debt to Spicer and why?
C. In moving forward, advise Mr. Bishop/ Mr. Mansell on FOUR (4) importance of being in a partnership business.
D. Partnership is usually dissolved without the help of the court, though sometimes the court is brought in. Discuss TWO (2) ways for a partnership to be non- judicial dissolve.
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