Law Homework Help

Based on the article analyze the questions given: 400-500 words

Use some example case the support idea if possible (provided in file below)

REQUIRED TO USE THEORIES (LAW SECTION) IN THE ATTACHED FILE TO ANSWER AND SUPPORT THE QUESTIONS.

Use the IRAC response method to provide the answer.

Pat and Lily are friends and decide to start up a retail nursery business. On advice from their accountant, they incorporate a proprietary company called LilyPat Pty Ltd. The nursery was very successful, and Lily commences serving refreshments in the nursery shop. Pat always resisted the idea of serving refreshments in the nursery because it was not part of their main business plan. He alleges that this refreshment service diverted resources away from the nursery. Lily argued that it enhanced the business by drawing more customers and that potentially the income from the refreshments would outstrip the nursery revenue. Gradually, their differences in opinion have grown, and their relationship has become very difficult. Decisions about the management of the business are difficult to achieve. A deadlock situation is continuing in the company.