Assume that a valid partnership, by the proposed name Nandipha n Pals Print Stationary Serviceswas formed.
Question:
Assume that a valid partnership, by the proposed name Nandipha ‘n’ Pals Print – Stationary Serviceswas formed. Further assume that the business made good profits for the first two years. In the third year, assume that the partnership failed to pay a certain service provider, a company named ACD (Pty) Ltd for 12 months, and now owes this creditor an amount of R1 250 000. ACD (Pty) Ltd is desperate to recover the amount owed, but the company is unsure about how to proceed against Nandipha ‘n’ Pals Print – Stationary Services as a partnership business. Assume that you are a candidate attorney with law firm Webber Wentzel Bowens Inc (Webber Wentzel) and the ACD (Pty) Ltd CEO has approached the law firm for advice. Your principal at Webber Wentzel has assigned you to this case. Now, the CEO of ACD (Pty) Ltd, during consultation, tells you that the company intends toinstitute legal proceedings against either the partnership or the partners to recover the amount owed to them.
They are unsure of whether this is possible or if it is possible, how this is to be done in light of applicable law.
Give the CEO of ACD (Pty) Ltd your legal opinion on this.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts