2nd Intra Mediation and Client Counseling Competition, 2019

Clarifications

Q1. Whether the laws will be pari materia to India or Scotland?

A1. As the problem relates to Scotland, Scotland laws would be applicable. Without going
too deep into the laws, students should try to demonstrate the basic knowledge.

Q2. The nature of business of the partnership firm as the problem states that half of its
income is received by executing service and other contracts to third-party business (es).

A2. Partnership is into the IT business which makes various apps and programs. So, the
income is derived from selling and licensing apps and programs.

Q3. The nature of business of David's Company and the contracts entered into with the
partnership firm, as the problem also states that the partnership has entered into many
outsourcing, License and other contracts with David’s Company.

A3. Students can have presumption as to the David’s Company’s business considering the
fact that partnership has entered into licensing agreements with David’ company for its apps
and programs; and also has entered into an outsourcing contract with the Company to provide
technical assistance to David Company’s in setting up any online platform, apps, programs,
etc. for Company’s clients.

Q4. Whether the apps and programs developed have been in the name of Peter or the
partnership firm?

A4. Anything developed under the partnership name is presumed to be an asset of the
partnership. But as Peter with his intellectual has programed them, he claims exclusive right
over all of them.
Q5. Is there a partnership deed?
A5. David Company legally owns 60% share in profit & Loss of the Partnership. Remaining
can be presumed.

Q6. Is David a Sleeping partner?

A6. No clarification needed.

Q7. Is Elena still a partner in the partnership firm?

A7. Yes.

Q8. What is the year of David's joining of the firm and what was the year when he felt that
Peter is taking undue benefits?
A8. No clarification needed.

Q9. Whether or not the dissolution was initiated or whether it was being considered by the
parties?
A9. Parties are meeting to discuss the terms of Dissolution.

Q10. What is the Profit Sharing Ratio?

A10. Available in problem.

Q11. The Mediation problem makes a mention of both “Dissolution of Partnership” and
“Dissolution of Partnership Firm” and they have been used interchangeably. Therefore,
which one is to be followed?
A11. Both are same.