9, Floral Designs is a partnership among A, B and C. A sells his partnership int
ID: 377994 • Letter: 9
Question
9, Floral Designs is a partnership among A, B and C. A sells his partnership interest to P, who alleges that as a result of the purchase, she is now a co-partner with B and C. Accordingly, she demands a voice in managing the firm, and B and C refuse. P threatens suit. Who wins? Explain. Decision Rule of Law 10, Futuristic Concepts is a partnership owned by P, B and Q. who have provided in the Articles of Partnership that profits should be shared equally. P and B decide to change the method of sharing profits. Q finds the change in method unacceptable and demands that the onginal equal-share method be retained P and B resist, asserting"majority rules." What result? Explain Decision Rule of LawExplanation / Answer
9. Decision: P will not get voting rights if these were not given to P at the time of buyout. This would hold true if at the time of purchase from A, B and C did not agree to giving voting rights to P. The transfer does not give A's voting rights to P. This agreement should have been signed by B and C. It could also have been between the firm and P.
Rule of Law: Partnership Act in the country as per the laws that govern the functioning of organizations. Admission of a new partner requires unanimous consent.
10. Decision: Decision regarding partnership may be decided by a majority of the partners
Rule of Law: Under the Articles of Partnership majority can decide
15. Decision: Controlling influence of C's agreement with A and B - This agreement holds over the earlier partnership stake of C
Rule of Law: C has retired with A and B's consent; X cannot ask C to pay if A and B cannot.
16.
Decision: A is limited partner.
Rule of Law: Death does lead to dissolution of a limited partner. This will not happen only if there is an agreement that dissolution won't happen if a limited partner dies.
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