Javi suggests to Carletta that they should form a business together. Javi agrees to help supply Carletta's South American clothing store in Cambridge, ON. Over dinner they shook hands with the understanding that they would share profits 50/50 over the next year, just to make sure that the business was successful. At this dinner Javi buys dinner for Carletta as a gesture to seal the deal. Javi agrees to be the company representative that sources unique clothing in South American countries; Javi is a Peruvian citizen and he has close business contacts in Peru, Chile, and Bolivia. He makes the offer to utilize his contacts to help Carletta expand her business. Carletta will sell the clothing in her small retail shop in Canada. The business thrives. Eight Months later, Javi has been offered a better opportunity with a rival and wants to accept it. Indeed he does that and leaves the company. Distraught, Carletta comes to you and asks the following questions:

a. Did Carletta and Javi have a contractual relationship? Apply the law to the facts of this case. (3 marks)

b. Did they have a partnership? Apply the law to the facts of this case. (3 marks)