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Patty and Bob were in a romantic relationship. While they were seeing each other, Patty and Bob acquired an electronics service center, Bob paying $60,000 and Patty running all facets of the center. The center becomes very profitable. Two years later, when the romantic relationship ended, Bob goes to court for a declaration that they had no partnership because they did not have a written partnership agreement and Patty contributed no cash, she was merely an employee. Did they have a partnership

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jepessoa

Answer:

Most states accept oral agreements when forming partnerships. This would not be an exception. the fact that Patty didn't contribute any money doesn't mean that she cannot be considered a partner. Her contribution might be her labor. Unless the partnership previously recorded Patty as an employee, then she can claim being a partner. Since no written agreement was made, profits must be divided equally.

Explanation:

The decision regarding the partnership between Patty and Bob would be as follows:

Yes, they have been partners where one has employed capital while the other has employed his entrepreneurship.

What is Partnership?

A Partnership is described as an acquaintance and association that exists between two or more individuals in order to run a business.

In the given situation, although there is no written agreement between them, Bob will have an equal share in the profit of the business.

The reason behind this is that one employed his capital while the other employed his skills and efforts(entrepreneurship).

Thus, they would be considered as partners as he was not hired as an employee in the company.

Learn more about "Declaration" here:

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