Anne, aged 17 years, and Susan, 21, planned to earn money in the summer by sewing...

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Anne, aged 17 years, and Susan, 21, planned to earn money in the summer by sewing children's clothing and placing it on consignment at a local clothing store. Each of the girls owned their own sewing machine and worked from their own home. The girls decided to pool their funds for the purchase of necessary supplies. The proceeds of any sales would be deposited in the pool. Anne, with Susan's consent, placed an order with a fabric store for 100 metres of fabric, which she planned to use for a line of dresses she had designed. After the fabric was delivered and she had completed several dresses, Anne informed Susan that she was going to spend the remainder of the summer travelling with her family. She then gave the remaining fabric to Susan and asked for her share of the profits to date. The fabric had not yet been paid for. Discuss the nature of this relationship, and the duties and liabilities of the parties, if any. Anne, aged 17 years, and Susan, 21, planned to earn money in the summer by sewing children's clothing and placing it on consignment at a local clothing store. Each of the girls owned their own sewing machine and worked from their own home. The girls decided to pool their funds for the purchase of necessary supplies. The proceeds of any sales would be deposited in the pool. Anne, with Susan's consent, placed an order with a fabric store for 100 metres of fabric, which she planned to use for a line of dresses she had designed. After the fabric was delivered and she had completed several dresses, Anne informed Susan that she was going to spend the remainder of the summer travelling with her family. She then gave the remaining fabric to Susan and asked for her share of the profits to date. The fabric had not yet been paid for. Discuss the nature of this relationship, and the duties and liabilities of the parties, if any.

Answer rating: 100% (QA)

Nature of the Relationship and DutiesLiabilities This situation presents a complex scenario with elements of partnership agency and potential breach o... View the full answer