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Alice and Bob are best friends and they decide to set up and run a restaurant. They plan to open the restaurant on 5 February 2010. To prepare for the grand opening, they agree that they are agents of each other. Alice will be in charge of leasing suitable premises to run the business from and will be in charge of hiring the employees. Bob will be responsible for buying the equipment that they need to run the restaurant. Both parties are very thrilled about the project. They believe that the business when it is up an running would generate tens of thousands of dollars a week. In December 2009, Alice find suitable premises for the new restaurant and she consequently leases these premises. Further, Alice and Bob opened a joint bank account for their business. They plan to share equally the profits and losses from the business. On 5 January 2010, Bob buys the furniture for the business which subsequently is delivered to the newly leased premises. However, on 27 January 2010, Alice and Bob have a dispute which leads to the end of their commercial relationship. Any project of running the business together is scrapped. However, issues such as payment of creditors and division of assets between Alice and Bob remain. Advised Alice and Bob on the nature of the business.
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