Legal Issue ILAC

HYPOTHETICAL FACTS\r\nEd, Jake and Charlie set up a stock-broking business called \'Magic Zillions\' located in Forks, Queensland. They have been running the business at a loss for a period of 2 years. The loss was a delayed result of the Global Financial Crisis. Ed and Charlie have always run the financial aspects of the business, while Jake has been responsible for bringing in new clients. As a result of \'Magic Zillions\' making losses over the past two financial years and Bella\'s successful business background, \'Magic Zillions\' recruited her to join the firm in early January 2014. Bella was put in charge of managing the business and supporting Ed and Charlie with advising the firm\'s clients. There was no separate agreement as to how profits or losses would be shared between those involved, and despite the firm only having $10,000 in capital, Bella contributed no capital to the firm. \r\nThe firm owns the building in Forks where they regularly meet their clients. On 5 February 2014, on arriving at work one rainy morning, Jake saw Ed walking to the front entrance and, as they often did, Ed and Jake jokingly raced each other to the door and jostled through. Due to the playful jostling, Jake slipped and fell on the tiles just inside the front entrance to the firm\'s building. In doing so, he dropped a bottle of machine oil required to service one of the firm\'s photocopiers that he had purchased on the way to the office, by using the firm\'s petty cash. The bottle of oil broke and contents were spilt on the floor. Jake cleaned up the glass and other items but as he was in such a hurry to get to a client meeting he forgot to ask the maintenance man to clean up the oil and put up a \'Caution: Wet Floor!\' sign. An hour later, Mr Laurent, a client of the firm, entered the building and slipped on the oil breaking his right arm and leg. Mr Laurent is very angry and now wants to sue the firm for $30,000 damages as compensation for lost work and medical costs. Although the business is still operating, Charlie has since retired from the business due to stress and ill-health and has limited personal funds. Bella is annoyed with her colleagues\' foolish behaviour and is claiming that she should not be liable for any damages because she has only just joined the firm and was not at work when the accident occurred. \r\nUsing ONLY the Partnership Act 1891 (Qld) and relevant case law from the textbook and partnership lecture slides (do not use sections or cases outside of these materials), discuss whether or not a partnership exists and advise whether the firm or any other parties can be held liable for Mr Laurent\'s injuries. You should not cover any material from contract or tort law lectures or chapters as it is evident a breach has occurred. You must use the ILAC Method to answer this question. \r\n\r\nNOTE: You may use any relevant case from any jurisdiction in the textbook and/or lecture slides. As this is NOT a research assignment, it does not matter whether the cases are persuasive or binding and you do not have to note this in your assignment.\r\n\r\n**ILAC STRUCTRE SHOULD BE USED!!\r\n**Chapter 17 (Partnership) of Course Textbook (Clive Turner, Business Law for Managers, 2012) and the lecture content covering Partnership Law. These are the only sources of information required (to be used) for this assignment. Do NOT undertake any additional research as marks will not be provided for such.