Cutler worked as a bartender for Bowen until they orally agreed that Bowen would have the authority
Question:
Cutler worked as a bartender for Bowen until they orally agreed that Bowen would have the authority and responsibility for the entire active management and operation of the tavern business known as the Havana Club. Each was to receive $100 per week plus half of the net profits. The business continued under this arrangement for four years until the building was taken over by the Salt Lake City Redevelopment Agency. The agency paid $10,000 to Bowen as compensation for disruption. The business, however, was terminated after Bowen and Cutler failed to find a new, suitable location. Cutler, alleging a partnership with Bowen, then brought this action against him to recover one-half of the $10,000. Bowen contends that he is entitled to the entire $10,000 because he was the sole owner of the business and that Cutler was merely his employee. Cutler argues that although Bowen owned the physical assets of the business, she, as a partner in the business, is entitled to one-half of the compensation that was paid for the business's good will and going-concern value. Who is correct? Explain.
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Essentials of Business Law and the Legal Environment
ISBN: 978-0324303957
9th edition
Authors: Richard A. Mann, Barry S. Roberts