Best form of business for MTB will be S corporation. This type of cooperation is much attractive to owners from smaller businesses than is possible with a regular corporation. This is because S corporation offers some benefits from tax appeals and still indulges in providing owners of the business with protection over liability with regard to the corporate. With an S corporation, loss and income are passed on to stakeholders and are included over their individual returns of taxes. As a consequence, there is only one federal tax level to be paid. Additionally, S corporation owners not having inventory can utilize the accounting cash method which is simpler than the method of accrual. Under such method, income is taxed over reception and expenditure is deducted when payment is done.
From the perspective of Manny, the most ideal form will be limited liability. The popularity for this form of business is a recent process. LLC are hybrid entities that engage to bring together certain of best characteristics for corporations and partnerships. This structure and form provides owners in businesses with the protection of liability that corporate enjoy with dual taxes. Losses and earnings are passed through to owners and are inclusive as their individual returns of taxes. This may sound same as S corporation but it offers business owners with much attraction than S corporate. For example, presence of no limitation over the shareholders numbers. Additionally, any member in the structure of business is allowed to obtain complete participation based role in the operation of business within a limited partnership.
The best form of business will be Limited Liability Company. This form of structure is easier to formulate when it comes to registration. The benefits offered are diversified and considering the needs of both involved, partners are not given any permission over their individual operations.
Within the general partnership, partners have ability of managing company and assuming responsibility for the debts of partnership and related obligations. Under this arrangement, partners conducting their operations in co-joined manner have liability of unlimited nature which implies their individual assets have liability for the obligations of partnerships. From this perspective, partnership status will be granted to Manny under this structure especially because the essential investment that he is making.
It is evident from the case that LeBron had authority of only entering into the contract sales with previously expressed approval from Floyd. So, even if there was a contract, first of all there was no authority present with LeBron to consider it. There is no presence of a contract as it wasn’t signed by the one responsible. There was an offer to which there was a counter offer but it was not accepted through the king of sales and therefore the contract stands invalid.
A bilateral contract is one that involves two parties entering into an agreement wherein both parties are promising to indulge in an operation or task. Unilateral contract is where a party makes promise to another party taking action as prescribed within the offers. In the law of contract, unilateral contracting allows for only individual person to be involved in an action undertaken through a person individually. Therefore here, if there was a contract then it would be unilateral as LeBron did not convey the acceptance from his end.
Specific performance of contract is applicable here. Specific performance is a court order which needs parties to perform a particular act generally which is given in a contract. From this, perspective the damage received by New Colt will be in the form of MTB completing the requirements of the contract. This specific performance order is a substitute to damages being awarded and can be classed as an equitable based remedy generally utilize in injunctive relief form with regard to confidentiality of information. This will prove to be a loss for MTB and a damage award for New Colt.
A binding authority is a contract between an agent of management and a cover holder. However as evident in this scenario, there was no agent of management involved because LeBron was not responsible for this management and was never given the authority for the same as per the case. Under such agreement, the agent management is responsible for delegating the authority to enter insurance contract which needs to be underwritten through at syndicate member managed through it to the cover-holder in alignment with the agreement terms. However, it is evident that the contract cannot be binding as it does not take place between correct parties. As per contract law, this contract does not stand.