Legal Relationship with Powers and its Legal Issues and Implications Essay

Legal Relationship with Powers and its Legal Issues and Implications - Essay ExampleIn my opinion, the relationship is non a limited compact as Powers played an active role in the management of the calculating machine credit line.In Ontario, limited liability partnerships sack up only be used for anticipateing on a profession, where rule permits. Examples include lawyers and scoreants (Shani, 5). The relationship between Lawrence and Powers is thus not a limited liability partnership as they are not in a profession such as doctors and lawyers but rather entrepreneurs in the copier and computer renting business.A partnership is a relation that subsists between persons-individuals or corporations-carrying on a business in common with a view to profit (Shani, 2). A partnership can be a formal relationship (that is, express partnership agreement) or an informal relationship. The court whitethorn hold that the relationship is a partnership even if the parties dont realize they are in a partnership (deemed partnership) (Shani, 3). But the receipt of such a share or payment, contingent on or alter with the profits of a business, does not of itself describe the person a partner in the business, and in particular, a contract for the remuneration of a servant or agent or a person in use(p) in a business by a share of the profits of the business does not of itself make the servant or agent a partner in the business or liable as such (Shani, 8). Lawrence told Powers, If you will agree to operate the new computers, I can pay you more by sharing the profits from that branch of our new business with you. Powers agreed. Hence, there is a relationship that subsists between Lawrence and Powers to carry on the own(prenominal) computers renting business with a view to profit. However, more information is needed as to whether there is an employment contract between Lawrence and Powers that makes him a servant or an agent. The relationship between Lawrence and Powers for the personal computer renting branch of the business is assumed to be a partnership since there was no mention of contract by Lawrence. Even if Powers is not aware that his relationship with Lawrence is a partnership, the court may construe otherwise.Where there is no partnership agreement, the partnership is governed by the Partnerships Act (Shani, 5). The Partnership Act sets off the fiduciary duty of partners. No partner is allowed to incur secret benefits - that is, each partner must account for all benefits received by him/her personally from any transaction arising from the use of the partnerships name, property or business connections - if he/she fails to get permission of his/her partners beforehand, the benefit then belongs to the partnership (Shani, 6). Applying the law to the case, Powers purchases the computers from Intelli Inc., an office equipment and supply caller-up of which shares are held by Hugh Powers mother and father. Powers has incurred secret benefits beca use the purchase cost of the computers entered into by Powers was at the manufacturers suggested retail price and did not reflect any form of volume discount, even though volume discounts were routinely disposed by