Answer the following problem question. Remember to identify clearly the relevant legal issues and support your answer by reference to the relevant legal principles and authority. Your answer should be presented in essay format and should present a consistent and coherent argument.
Law Assignment gives you a strong opportunity to understand the laws of business.In this Law Assignment we know about the rules and regulations of business when we work in partnership.
Celine and her friend Marigold decide to open a business together. They have been friends for so long they decide they don’t need any paperwork and can do all they need with a handshake.They decide to contribute equally to the set up costs of the business and share the ongoing costs and the profits equally. Marigold will be a silent partner, and Celine will run the business and make all the day to day decisions. They establish a specialist stationery business supplying specialist forms and other requirements to solicitors and conveyancers which they call Celgold Forms (‘Celgold’)
Celgold has a very flat management structure –Celine makes all the decisions and she and Marigold meet about every two months to go over the books. Other than this, Marigold has no connection with the operations of the business. Celine employs several salespeople to develop and service customers as well as other general office staff to fill the orders.
Her best salesperson is Monty. Celine is aware that Monty has received an offer from a business rival, offering more money and a more responsible position. Anxious to retain his services, Celine offers him a substantial pay increase, and the title of “managing partner”. No changes to his job role or responsibilities accompany his new title – he is still a salesperson, responsible for acquiring and retaining customers and nothing else. However, Celine now begins to introduce Monty to her suppliers as her “managing partner”, has a name plate made for his desk indicating that he is the managing partner, and reprints his business cards, indicating his position as “managing partner”.