Billy and Sasha decide to go into business together following the completion of their studies at university. After extensive market research they write up a business plan for an online florist to be named Fusion Flowers.
Sasha has recently inherited $50,000.00 which she contributes as start-up capital. Billy doesn’t have any savings but contributes his van, tools and other equipment. They agree to lease a small warehouse space from which to operate the business.
The pair agree that Sasha will pick up the flowers each day from the Flemington Markets while Billy will manage all customer enquiries and both will undertake deliveries. Profits will be split 50:50.
After the first two weeks of operations, they are struggling to keep up with the orders and decide to hire Jacob to take care of deliveries.
Over the next month the following events unfold:
- Without asking Billy, Sasha orders some very rare (and expensive) orchids from Ooh Orchids believing that she would be able to sell them, however, Billy says he never would have agreed to this if he had been asked. Ooh Orchids has demanded payment of the outstanding invoice of $1,500 from Billy.
- While delivering some flowers the delivery driver gets caught in heavy traffic. Under pressure from Billy to get the flowers delivered on time to “a very important customer”, Jacob is speeding and crashes into a car stopped at a roundabout. Nobody is injured and the flower van is protected by a bar at the front, however, there is $5,000 of damage caused to the other driver’s car.
- Without consulting Sasha, Billy started a separate business selling flowers specifically for weddings. So far Fusion Flowers haven’t been supplying flowers to events as it would increase their insurance costs, however, Billy and Sasha have previously discussed the lucrative nature of supplying the wedding industry.
please, what is Billy’s potential liability supporting it with suggestions with relevant case authorities