Cory, who is an advertiser that has established a corporation, receives a contract from a company for an advertising campaign. However, Cory does not have the resources to complete the contract and thus suggests to two other sole proprietors, Jim and Rob, that they should all work together in order to complete the job. The three individuals agreed that although the contract was with Cory's corporation, they would all contribute equal amounts of capital, staff and time and divide the profits equally, subject to a commission fee of $50,000 which would be payable to Cory's corporation. The job was complete and the three individuals each earned $250,000. At the beginning of the next year the company told Cory they would not be renewing the contract because they signed with a newly formed corporation by Jim. Cory and Rob want to take legal action against Jim.

Do Cory and Rob have any basis to commence a legal action against Rob or against Rob's corporation? Include the applicable legal principles.