Question: meshack is a marketer through his business and through his...
Meshack is a marketer through his business and through his business, Alternative Sounds, he managed the Australian singing tour for Jay Loh, a popular music artiste. Entertainment Concepts Pty Ltd agreed to finance the tour. Last year Alternative Sounds and Entertainment Concepts entered into a written agreement where Alternative Sounds agreed to assign to Entertainment Concepts a half interest in the contracts and to perform the said contracts as a 'joint venture'. The finance advanced by Entertainment Concepts was described as a loan to the joint venture. They agreed that the net profits would be divided at the end of the contract. They also agreed that all matters were to be agreed by the parties and any losses were not to be shared on the same basis as the profits. The agreement provided that, after Entertainment Concepts had been repaid the loan and other expenses, any profits made from Jay Loh’s concerts were to be shared equally between the marketer and Entertainment Concepts. After a few months a dispute arose and Meshack is now concerned about whether they are in fact in a partnership or a joint venture.
Using the IRAC method of problem solving, explain whether the agreement between Alternative Sounds and Entertainment Concepts Pty Ltd was a joint venture or a partnership. Give supporting case law