Question: Read Case # 5 Ella Marsh and Noah Nightly, college friends and passionate coffee enthusiasts, decided to turn their love for coffee into a business
Read Case #
Ella Marsh and Noah Nightly, college friends and passionate coffee enthusiasts, decided to turn their love for coffee into a business by opening a coffee shop, "Bean There Brewed That," in a trendy neighborhood known for its bustling food and drink scene. To get the business off the ground, they formed a partnership, each contributing $ and agreeing to share profits, losses, and management responsibilities equally.
"Bean There Brewed That" quickly became a local favorite, drawing in crowds for its unique blends and cozy ambiance. As the coffee shop grew successful, Ella and Noah considered expanding by opening a second location. However, their visions for expansion did not align. Ella wanted to take a loan to finance the new location, whereas Noah preferred a slower, selffinanced growth model.
While Ella and Noah were still deciding on their path, Ella made an independent decision to enter a preliminary lease agreement for a new location, believing that swift action was needed to secure a favorable lease term. She signed the lease agreement using the partnerships name, without Noahs knowledge or approval. When Noah learned about this, he disagreed vehemently with Ellas decision, concerned about the financial risks involved, and filed suit.
Did Ella have the power to enter into a contract on behalf of the business? Is Noah liable for the commitment to the lease agreement entered into by Ella, on behalf of the business, without his consent? Explain. Nightly v MarshUse these questions to help you think about the case. You are not required to answer them on the homework
Analyze the case using the IRAC Issue Rule, Application, Conclusion Method
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