In 2002, Edward Delgardo completed his plumbing apprenticeship and became a qualified plumber. He then worked as an employee of a plumbing company for six years before starting his own plumbing business. He began his business as a sole trader, and then joined in a partnership with Ronnie Tran. Edward is married with two small children. He and his wife live in a house that Edward inherited from his deceased parents. The house is now worth $400,000.

New facts:  Edward has joined in a partnership with Ronnie Tran to operate a plumbing business called E&R Plumbing. Edward now hears of a new hotel that is being built in Sydney. The builder of the hotel has called for tenders from plumbers to complete all the pipe-work.

The job is too big for Edward and Ronnie to undertake on their own but they suggest to Domingo, who operates a plumbing business as a sole trader, that E&R Plumbing and Domingo should bid for and complete the job together. If they get the contract, Edward tells Domingo, E&R Plumbing will do roughly half of the work, and Domingo will do the rest. E&R Plumbing and Domingo will each pay all their own costs separately, and be entitled to payment for the share of the work they actually complete. When the job is done, E&R Plumbing and Domingo will each go their own way again.