Question

Read the Blumberg v. Ambrose case that begins on page 597 of the text (Chapter 17).

answer this question according to Blumberg Ambrose case.

Miscommunication is often the basis for litigation - what should the parties have done in this case?

How do you define a partnership? What should you do before engaging in a business operation?

Answer 1

Miscommunication is the bone of contention of all litigation creates barrier for operation of any activity.Here in this case Blumberg v. Ambrose failed to communicate material facts of CampDoc each other before filling the business entity or limited liability company or LLP.Here Ambrose did the non disclosure of material facts to Blumberg.Before filling or venturing any business entity that must be ligally binding procedure with all parties.All parties should agreed upon the all terms and conditions then theagreed parties signed the document before any legal person or instituion.

First of all we need to understand and define partnership that it is the legal form of business operration or entity between two or more persons who share and agreed upon management and profits.The legal agreement can be express or implied that uniform partnership act governs the operations of partnership in the absence of an express agreement.So we need to understand some characterstics of partnership in the business:

There must be an legal agreement

Existence of business

Sharing of profits as per the legal agreement.

Relationship

Legal membership and nature of liability.

Must be cntrol and obligation towards ownership and along with nontransferability of profit.

Before entering any venturing new business there are several factors or criteria need to follow and do the analysis.So some basic criteria as follows:

A business owner must business idea foresight.

Very sound expertise over the business.

Do have analysis of market demand or supply and fisibilty idea.

Having Start-up cost,working capital and finance.

Idea about market competion,geographical and demographical knowledge.

And non of the above is manforce or human capital.

So these are basic criteria need to follow before venturing into business.