Business Law

Question 1:

John is an architect. Last year he agreed with his father Albert, who owns a small business, that he would prepare design plans for renovation of the business premises for him for a fee of $1000. John did the design plans and Albert submitted the plans to the building authorities for approval. Albert now refuses to pay John, saying that it is not right for a son to charge his father for doing him a favour.

Two years ago, John separated from his wife Wendy. As part of a written agreement between them, John agreed to pay Wendy $2000 per month in order to maintain her and their daughter, Carol. The money also had to be used to pay off the mortgage on the house that John and Wendy jointly owned. John promised that when the mortgage was paid off he would transfer his share of the property to Wendy. Now, however, although the mortgage has been paid off, John refuses to transfer his title in the house to Wendy.

Advise John on Whether:

a) He can require Albert to pay him for his design services, and

b) Wendy can require John to transfer his part of the house to her as agreed.

Question 2:

Charles and William, two good friends, are both gifted in drawing cartoons. They recently graduated from a polytechnic and would like to set up a business producing animated films. They are now wondering about the appropriate form of business to adopt. In particular, they would like to set up either a partnership or a company. They have several concerns. Firstly, they would like, if possible, to restrict their liability for business losses. Secondly, it is anticipated that both of them will be actively involved in the business. Finally, each will have a half share of the business.

Advise Charles and William on the different business forms they could consider.

1a)

Introduction

This question relates to the issues surrounding Consideration and Domestic agreements. Albert agreed to pay a fee of $1000 for the design plans that John has prepared for...