question archive Luke and John are partners in a home construction business called Buildgood Constructions
Luke and John are partners in a home construction business called Buildgood Constructions
Subject:BusinessPrice: Bought3
Luke and John are partners in a home construction business called Buildgood Constructions. Luke is unhappy with John because John tends to do far less of the contracted work than Luke does. Because John is not doing his 'share' of the work, several of the houses that are being built are behind schedule.
As a way of making sure that the work gets done on time, Luke decides to hire an expensive piece of machinery that will allow the work to be done more quickly. Luke leased the machine in the name of the business. Luke did not speak to John about this before he signed the two-year lease.
When John found out about the new machine, he became very angry and told Luke 'that if he wants the machine, he (Luke) will have to pay for it.'
Which of the following best describes the legal situation?
Group of answer choices
1.Because Luke and John are partners, they are required to agree on all things that are done in the name of the business. Therefore, the lease agreement is void ab initio.
2.Because Luke did not consult John about hiring the machine, the cost of hiring the machine will have to be paid by Luke, personally.
3.Because of John's failure to do his fair share of the work, the cost of hiring the machine will have to be paid by John, personally.
4.Because Luke is a partner, he is able to enter into the lease agreement on behalf of the partnership. Therefore, the cost of hiring the machine will have to be paid for by the business.
