THIS IS A BUSINESS LAW QUESTION!!! THIS IS A BUSINESS LAW QUESTION!!! On Februar

Question

THIS IS A BUSINESS LAW QUESTION!!! THIS IS A BUSINESS LAW QUESTION!!! On February 15, 2013, Carol invested $75,000 in Gina and Kitty's business engaged in wedding planning. In exchange for said investment Carol was to earn 5% of the next 4 years profits. On June 1, 2013, Carol became concerned about the operation of the business and began overseeing its daily management. On June 16, 2013 the wedding of Mike and Mary, planned by Gina and Kitty's Wedding Planners was unable to go forward due to Kitty not booking a banquet hall or band due to Kitty's negligence.Assuming Gina and Kitty to be partners, discuss any and all possible liability of Gina, Kitty and Carol to Mike and Mary for Kitty's negligence Explain in detail.

Explanation / Answer

Since partnership is the business which allows a person to invest in business for the purpose of sharing profits. Carol is also a partner to the business. A partner’s wrongful act or omission can bind the partnership if the wrongdoing partner has acted within the ordinary course of the partnership’s business. All partners are liable for the negligence by one partner. Mike and marry may choose to sue only kitty or the entire partnership business for their losses.

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