Business Law - resit Coursework Example | Topics and Well Written Essays - 3000 words

Business Law - resit - Coursework Example However, Sally is concerned about the fact that Anita remains unwell very frequently which makes her scope of contribution for the overall business questionable. Sally is also concerned about the fact that owing to the health complications of Anita, a situation might arise, where the entire business will be Sally’s responsibility where she would want to take over to the entire business by paying off Anita. Partnership law of United Kingdom Partnership in business is commonly known as the relationship between two people or a group of people who view to work together under one name with the intention to earning maximum profit. According to the s. 25 & s. 26 Vict.Ch.89 of the Partnership Act 1890 of UK, people involved in a partnership are deemed as jointly accountable for the failure as well as the success of the business as both of them own the common property. Furthermore, the law also suggests that, at the least two people or group would be required to form a partnership agre ement1. a) As depicted in the given case referral, both Sally and Anita are eager to work together as a combined unit. The underlying motive of Sally is to obtain competitive advantages in the local market. However, the motive of Anita was to continue obtaining profits, by mitigating her limitation of poor health. Here, neither of the parties has invested any significance towards investments made to the business. In this regard, section 24 of the UK Partnership Act 1890 depicts that when two individuals or companies are engaged in any partnership, they invest equal amount to the overall business whereby the profits or losses resulting from their operations will also be shared equally. Since both Sally and Anita are assumed to invest equally in the business, they are also liable to share the outcomes of the business equally. Furthermore, section 24 of the Partnership Act 1890 also depicts that owing to similar contributions in the form of capital to the business, either companies or individuals involved in the partnership will equally take part in the management of the business, including all the ordinary matters linked with the company operations. Contextually, both Sally and Anita will need to share the responsibilities of the business equally owing to the section 24 of the Partnership Act 1890. In precise, it can be stated that remuneration and work responsibility of both the parties will be equal in accordance to their inputs in the combines operation of both the businesses2. Furthermore, Sally is also concerned about the frequent health complications of Anita. Owing to this aspect, it is evident that Sally will need to provide greater inputs to the business as compared to Anita, owing to Anita’s health problems and consequently, Anita’s share shall logically remain limited or lower than that obtainable by Sally. In such situations, where the partners involved in the business are recognised to fail in actively contributing towards the organiza tional success and are thereby termed as ‘sleeping partners’. According to the Limited Partnerships Act 1907 of the UK, sleeping partners will be only being liable to get profits for the amounts they have invested in the business. In this regard, Anita will be eligible to realise a marginal amount from the profit of the business, whereas Sally, owing to her greater contribution towards the management of the business, will be liable to obtain a larger section of the profit of the