Reference no: EM132223882
1. Abby, Marcus and Nick are partners in a medical practice. They lease premises in the Wingtown Mall. The lease is for five years with a further right of renewal for one term of five years. Nick had an argument with the Wingtown manager, Ned, about Nick parking in Ned’s car park. Ned told Abby and Marcus that he would not renew the lease which was due for renewal in July 2018 if Nick was to continue on the premises. He also made this clear to Nick. Abby and Marcus had also become increasingly worried about Nick’s professional competence and his qualifications from the Hollywood Upstairs Medical College. They resolved to end the partnership and gave notice to Nick informing him of their intention to end the partnership with effect from 1 May 2018. It is now September 2018 and Nick has discovered that his former partners are still practising in the Wingtown premises. To his surprise he learns that, in April 2108, Abby and Marcus had negotiated an extension of the lease for another 5 years.
Required: Outline the nature of any claim Nick may have against Abby and Marcus. If Abby and Marcus had approached you for advice in April, before they gave notice of their intention to terminate the partnership, what advice would you have given them to avoid any potential problems?
2. Willie works as a gardener for Tohunga High School. His primary job is maintaining the playing fields and gardens at the school although occasionally he does some painting and carpentry in the classrooms when the need arises. One weekend he borrows a chain saw from the High School to help in a working bee which is building an adventure playground at his daughter’s primary school. He is asked by one of the parents, Ned, if he would help him cut some firewood he has at home. Willie agrees and the following weekend he spends all day cutting firewood with the school’s chain saw for Ned. Ned is very pleased with Willie’s work and pays him $200. Willie subsequently gets a number of offers to cut firewood in the weekend and soon has a thriving little business. With the end of winter approaching he decides that he wants to diversify and make use of his gardening expertise. He proposes posting the following advertisement in the local supermarket: “GROUNDSMAN WILLIE HOME MAINTENANCE AND HANDY MAN. GARDENING A SPECIALITY. REGISTERED HORTICULTURIST.” There is no system of registration of horticulturists in New Zealand but Willie has a certificate in horticulture from his local polytechnic. Willie wants to know if his actions have any potential legal repercussions Advise him.
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What rights does a security interest give?
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