Esther owned and operated Esther's Pet Store, which sold pets and pet supplies. Esther's Pet Store was having financial difficulty, so she approached her friends Kelvin and Lyanne for help. On March 1, Kelvin loaned GHS50,000.00 to Esther's Pet Store and agreed to be paid 50% of the store's monthly profits until the loan and agreed upon interest were fully repaid. Also on March 1, Lyanne wrote a cheque for GHS30,000.00 to Esther's Pet Store and agreed to be paid 25% of the monthly profits on condition that the business should be converted into a Partnership and that she should be made a Partner. On March 15 Esther and Lyanne formalized the partnership arrangement in accordance with the Incorporated Private Partnerships Act, 1962 (Act 152). Esther used the proceeds from the cheques to purchase equipment, supplies, and a delivery truck for the store. Lyanne began working at the store and helping Esther with business policy decisions. Esther, Kelvin and Lyanne divided the profits from the store as they had agreed. On October 1, while driving the store's delivery truck, Esther mistakenly hit and damaged the car of a person named Clement. Esther's Pet Store did not have the truck insured, nor did the business have liability insurance. QUESTIONS 1. Discuss the relationship among the parties. 2. Determine whether Clement may recover for the damage caused to his car against any of the parties or Esther's Pet Store.
