Fundamental Business Law

    Fundamental Business Law

    This is Business Law assignment. This is Partnership Assignment. you have to use Barron Text book to answer the questions, and You have to Use Australian Law. actually you write in 10 days, but I can give you 2 days more to look for the Barron Text book. You have to use Barron Text book 90% then you can you use other books 10%.
    Read this case then answer the following questions:
    The Mills family had lived in the South Australian country town of Woopie for generations. Everyone knew the three Mills brothers: Kevin (25 years old), Stefan (21 years old) and Bevan (17 years old). One day, over breakfast, the three brothers decided to purchase a block of flats in Adelaide and rent them out to tenants. No formal agreement was drawn up, although records, including rent receipts, were issued in the brothers’ joint names. Kevin, Stefan and Bevan divided the rent received each month equally between them.
    Kevin and Stefan operated a small engineering works in Woopie called ‘WindMills’ which specialised in making wind-powered electricity generators. This business had been passed down through the generations of Mills’. Kevin and Stefan owned the WindMills workshop and shared the profits equally. Bevan was also involved and so far as the townsfolk of Woopie could tell, the three brothers were operating WindMills together. In fact, Kevin and Stefan employed Bevan in WindMills on a part-time basis. WindMills had accounts with hardware outlets and metal suppliers, with a credit limit of up to $12,000. Despite this limit, Kevin and Stefan repeatedly told Bevan not to spend any more than $4,000 per transaction on behalf of WindMills. However Bevan had, on separate occasions, bought over $4,000 worth of materials for WindMills. Each time that happened, Kevin and Stefan chastised Bevan but paid the suppliers without telling them that Bevan had exceeded his limit. Last month Bevan obtained $12,000 worth of steel on Windmill’s credit account from ‘True Blue’, a local metal supplier. Bevan sold $3,000 worth of this steel to several farmers for payment in cash, and delivered the rest of the load to WindMills. Kevin and Stefan were angry at Bevan for (again) over-spending his WindMills purchase limit. They were also doubtful about the small amount of steel that $12,000 could buy and declared that they would not pay True Blue when the account fell due.
    Unbeknown to anyone, Bevan had kept the $3,000 to finance his private past-time, online gambling. As a result, Bevan won $150,000 from a single $3,000 bet on a horse race. Bevan immediately disappeared overseas for the bright lights of Macau’s casinos. Subsequently, Woopie was agog as the story of Bevan’s ‘big win’ emerged. Kevin and Stefan decided to withhold any further payments of Bevan’s share of the rent on the flats. Instead Kevin and Stefan simply shared the rent equally between themselves.
    Questions:
    1. How would the relationship between Kevin, Stefan and Bevan in WindMills be best described in law?
    2. Would K, S and B be liable for Windmill’s debt owed to True Blue when its account fell due for payment? What could be the effect on WindMills?
    3. Can Kevin and Stefan rightfully withholding Bevan’s share of the rent?

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