Question

The fact pattern is as follows:

Adam who lives in NH, contacts his friend Bill who lives in MA and his friend Charlie who lives in RI. As a result of their conversations, Adam invites Bill and Charlie to dinner.

Two week later, the 3 meet for dinner. During dinner, Adam proposes that they all go into business with one another. Adam lays out his plan. He wants to set up an Advertising Agency and he has already has clients lined up, but needs partners with expertise and resources.

Bill is open to the idea, however he demands that if a business is formed, that 10% of the profits must be donated to charity. Charlie is also open to the idea, however he is concerned about Adam who has played fast and loose with the truth in his previous businesses. In fact, Charlie is aware that Adam is currently be sued for liable.

The 3 continue to have conversations and to exchange emails over the next few weeks.

Based on these conversations and emails, Adam looks at and contracts for office rental space. Bill contacts habitat for humanity and makes arrangements for ABC (Adam, Bill and Charlie) Advertising to donate of its profits to charity. Bill also agrees with the charity that if ABC advertising fails to provide at least $1,000 dollars in donations in the first year, then each member of ABC Advertising agrees to be responsible for making up the difference in the contribution either in whole or in part.

Meanwhile Charlie is meeting with his attorney and financial advisor to determine if the venture would be a good idea or not? Charlie show them the emails and documents and informs them of the conversations that he has had with Adam and Bill. Charlie's attorney and financial advisor are both concerned by what they have read and heard and advise Charlie to immediately inform Adam and Bill that he does not want to participate in the venture.

Upon receiving the notice from Charlie that he does not want to be part of this venture, Adam and Bill become upset and proceed to hire attorney's to sue Charlie.

Based on this scenario, again, identify as many concerns, issues, questions as you can from the prospective of Adam, Bill and Charlie. Please use the text to help support your positions.

Answer 1

Answer:-

Adam, Bill and Charlie get together where Adam proposes his concept of setting up a publicizing organization wherein Adam is having the customers for the equivalent in any case, the business require partners who can contribute their skill and assets for the business.

Bill and Charlie acknowledged the proposal of Adam. Bill acknowledged the proposal on the footing that the business will give 10% to the cause. Charlie was tad confounded as he recalled the previous records of Adam where he is at risk for his past business.

Adam, based on discussion has gotten an office space for the business on lease and Bill reached the environment for mankind for gifts.

Charlie counseled the lawyer and monetary counselor who has prompted Charlie that he ought not go into the business. Charlie sent a notification to Adam and Bill advising that he won't be a piece of business any longer.

After getting the notification from Charlie, Adam and Bill wanted to sue him and for doing this they began looking through a lawyer.

The primary issue with the strategic plan is that one of the accomplice of the business for example Adam is definitely not a reliable and honest individual which can be seen from his liability for the past business.

In addition, the state of bill of giving 10% of the benefit of the business may get satisfied if the organization makes benefit, be that as it may, on the off chance that the business runs into misfortunes or on make back the initial investment, at that point the 10% of gift will be required to be paid by the individual portion of the three partners which will be difficult on all the three partners.

Bill likewise concurred with the cause that if ABC promoting neglected to give in any event $1,000 in gifts in the primary year of business, at that point each accomplice of ABC Advertising office will be liable for paying the distinction in the commitment either in entire or to a limited extent. This further included to the weight all the three partners of the business.

Since, Charlie has counseled the lawyer and money related consultant for their recommendation, they have made the examination of things to come plausibility of the achievement of the business. At the point when they found that the business would not be appropriate and effective for Charlie, they prompted him to not to go into the venture.

Till now, the venture is only a thought where all the three partners has recently caused the discussion about the business and each of them three to have not gone into the agreement of partnership legally.

Under such conditions, if any of the partners of the business needs to exit from the business, he can select the equivalent by taking his rate share from the business gave he clear from a wide range of liabilities of the business as an accomplice. Charlie was not having any sort of liability since the business was at this point to begin.

Subsequently, he can without much of a stretch exit from the business and the possibility of Adam and Bill of suing Charlie by delegating a lawyer will be of no utilization and the body of evidence against Charlie won't stand in the official courtroom

Most definitely, by investigating the previous record of Adam which was not proper and bill's state of gift to foundation for going into the partnership and Charlie's lawyer and monetary consultant exhortation to Charlie for not going into the business, Adam, Bill and Charlie ought not shape the partnership and ought not go into the business.

Besides, Adam and Bill has not made any examination of the suitability of the business and Adam is simply having a thought and a few customers based on which the achievement of the business can not be affirmed. Subsequently, framing a venture and going into the business may cost the misfortunes to all the three of the partners.

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