Essay Business Entities Rebecca and Joel Contracts – Law Assignment Help

Assignment Task:

Case Study On Enterprise Law – Rebecca and Joel

Question ONE: Business entities

Rebecca and Joel decide to go into business together following the completion of their studies at university. After extensive market research they write up a business plan for an online florist to be named Fusion Flowers. 

Joel has recently inherited $50,000.00 which he contributes as start-up capital. Rebecca doesn’t have any savings but contributes her van, tools and other equipment. They agree to lease a small warehouse space from which to operate the business. 

The pair agree that Joel will pick up the flowers each day from the Flemington Markets while Rebecca will manage all customer enquiries and both will undertake deliveries. Profits will be split 50:50. 

After the first two weeks of operations, they are struggling to keep up with the orders and decide to hire Matthew to take care of deliveries. 

Over the next month the following events unfold: 

(a). Without asking Rebecca, Joel orders some very rare (and expensive) orchids from Ooh Orchids believing that he would be able to sell them, however, Rebecca says she never would have agreed to this if she had been asked. Ooh Orchids has demanded payment of the outstanding invoice of $1,500 from Rebecca. 

(b). While delivering some flowers the delivery driver gets caught in heavy traffic. Under pressure from Rebecca to get the flowers delivered on time to “a very important customer”, Matthew is speeding and crashes into a car stopped at a roundabout. Nobody is injured and the flower van is protected by a bar at the front, however, there is $5,000 of damage caused to the other driver’s car. 

(c). Without consulting Joel, Rebecca started a separate business selling flowers specifically for weddings. So far Fusion Flowers haven’t been supplying flowers to events as it would increase their insurance costs, however, Rebecca and Joel have previously discussed the lucrative nature of supplying the wedding industry.
Question TWO: Contracts

Tanya lives in a small town in the Southern Highlands region of New South Wales. She is an avid fan of the 1990s pop group, Spicy Boys, and, in particular, of one of the group members, Beefy Spice. When Tanya heard that Spicy Boys were touring Australia as a part of their 2019 Reunion Tour, she immediately bought a ticket for their only scheduled Sydney concert on 17 September 2019, which cost her $600.00. 

Wanting to make the concert a memorable event for herself, Tanya decided that she would be chauffeur-driven from her home to Sydney and back on the day of the concert. To this end, she contracted Bentley Limo Service, and told Bentley about the concert, describing her passion for the group, and her admiration for Beefy Spice. She said that she wanted Bentley to drive her to the concert and back in Bentley’s stretch-limousine. Bentley offered to take the job for $1,500.00, and Tanya agreed. It was further agreed that Tanya would pay a deposit of $500.00 immediately, and the balance on the day of the concert. 

When Tanya arrived at Bentley’s place on 17 September 2019, she was told by Bentley’s wife that Bentley had just left on another job which was more profitable than the job he had agreed to do for Tanya. 

Tanya was devastated, as there was no other means by which she could get to the concert in Sydney, and it was clear that she would miss the concert. 

To make matters worse, Tanya discovered the next morning that the seat that she had been allocated had been selected as the ‘Door Prize’ winner. This prize was unadvertised and was a spontaneous gesture by the Spicy Boys to their dedicated fans, and would have entitled her to meet the group backstage and to be presented with a framed and signed photograph of the group. Unfortunately, a pre-requisite of the door prize was that she had to be in attendance at the time of drawing, or it would be forfeit. She has later discovered that such a photograph would have fetched a price of $9,000 on the collectibles market.