Legal Underpinnings of Business Law Student name Institution Instructor Date Personal liabilities for breach of contract Breach of contract arises in situations whereby one party fails to fulfil or adhere to stipulations and obligations that bind them to the contract. Occasionally all parties claim to have fulfilled all their obligations under the contract and the courts will have to identify instances and cases of the contract that could have been breached. The table below outlines the different liability clauses subject to each business organization form. Comparison and contrasted Personal liability for the different forms of organization for Tinker & Tailor’s Home Security Service Tinker’s Home security service(Sole Proprietorship) Tinker & Tailor’s Home Security Service(general partnership) Tinker & Tailor’s Home Security Service(LP) Tinker & Tailor’s Home Security Service Inc.(corporation) Tinker & Tailor’s Home Security Service LLC(LLC) The owner personal liability against business debts that cannot be serviced by business profits. that it limits the members' personal liability for the debts incurred by the company. This is because limited liability companies are a separate legal entity different from the owners. However the members can in given situations be responsible for the business debts. This can happen when member(s) guarantee the company's obligation personally. In such a case the creditor can place a lien on your personal assets in the cause of default (Clarkson & Miller 2012). References Clarkson K. & Miller R. (2012). Business law: Text and cases: Legal ethical global and corporate environment. Mason OH; Cengage Learning. Seaquist G. (2012). Business law for managers. San Diego CA: Bridge Education Inc. Straus S. (2011). Get your business funded: Creative methods for getting the money you need. Hoboken NJ: John Wiley and sons. Inc. Publishing. Straus S. (2012). The small business bible (3rd ed). Hoboken NJ: John Wiley and sons Inc. [...]
Legal Underpinnings of Business Law Imagine that you own each of the following businesses: Tinker’s Home Security Service (sole proprietorship) Tinker & Tailor’s Home Security Service (general partnership) Tinker & Tailor’s Home Security Service (LP) Tinker & Tailor’s Home Security Service, Inc. (corporation) Tinker & Tailor’s Home Security Service, LLC (LLC) The businesses are being sued for breach of contract. Create a matrix that lists each business, and compare and contrast your personal liability exposure as an owner as a result of the lawsuit. For each business entity, analyze how you might limit your liability exposure as an owner. Describe a business that you may own some day or that you currently own. (Even if you never plan to own a business, pretend as if you will do so for the purposes of this assignment.) Examine the best business organizational form for the business that you have described, including in your examination personal liability exposure, management, taxation, and ease of formation. Submit a three- to four-page paper (not including title and reference pages). Your paper must be formatted according to APA style as outlined in the approved APA style guide and you must cite at least three scholarly sources in addition to the textbook.