John, Lesa, And Tabir Form A Limited Liability Company. John Contributes 60% Of The Capital,

John, Lesa, and Tabir form a limited liability company
John contributes 60% of the capital, and Lesa and Tabir each contribute 2%
Nothing is decided about how profits will be divided
John assumes that he will be entitled to 60% of the profits, in accordance with his contribution
Lesa and Tabir, however, assume that the profits will be divided equally
A dispute over the profits arises, and ultimately a court has to decide the issue
Use the IRAC structure to identify issues and apply law and facts to the case
The IRAC method has four steps: Identify the issue
Relevant law – Here you need to explain the law, not just state it
This could be sections/s of the Corporations Act or case law
Application to the facts – the law is applied to the facts of the problem
Conclusion What law will the court apply? In most states, what will result? How could this dispute have been avoided in the first place?