Law of Business Organisations Essay Example | Topics and Well Written Essays - 2000 words

Law of Business Organisations - Essay Example According to the QLD Partnership Act of 1891, there is a nature to partnership agreements that only holds partners accountable and liable for specific actions that are under the terms of agreement for a contract. According to Section 3 (1-15), liability issues of the business become questionable. Liability can be defined by the extent to which each individual is responsible for the other as well as through partner’s who breach the trust of other partners. According to section 23A, the liability not only includes basic actions and agreements, but also property and monetary value. Unless all property and money is acquired through business agreements, it is not a liability of the company. The rules to interest and duties of partners in section 27 also apply, which states that there is not a business agreement under the definition of a joint partnership unless each holds equal earnings within that agreement (Partnership Act 1891, 13-26, 2009). The first part to this is based on the term of partnership. Even though Jara and Alvarez are partners, Alvarez was not aware of the robbery or the deal that Jara had made with the robber. Under the terms of partnership, there is a joint ownership. However, this doesn’t mean that Alvarez or Jara is responsible for what the other owner does or does not do in terms of the partnership. Even though Alvarez and Jara are partners, Alvarez is not responsible for the actions that are taken by one of the members. This first defense doesn’t leave the company or Alvarez responsible for Jara’s actions. Unless he was involved in the act or had a joint agreement with the security used, he can’t be sued for his partners’ actions. Under section 3 (1-15), the definition of joint ownership does not include being responsible for individual actions. The second concept that applies under the partnership is based on the joint