Question
Jennifer Yauger owned a loft in uptown Silverton. Robert Tomba and Gary Jorgen were partners in a mail-order business in Middletown called NASCAR Collectibles. To
Jennifer Yauger owned a loft in uptown Silverton. Robert Tomba and Gary Jorgen were partners in a mail-order business in Middletown called NASCAR Collectibles. To open an outlet in Silverton, Tomba and Jorgen leased the loft from Yauger. As part of the agreement, Yauger received $2,650 in rent each month. Later Tomba and Jorgen set up a website and began an online auction house for NASCAR collectibles, similar to eBay. They were successful beyond their highest expectations, making over $2 million in their first year of operation. When another online auction house offered Tomba and Jorgen $60 million for their site, they accepted the offer without hesitation. When Yauger heard about the deal, she claimed that she was a partner and demanded a $20 million payment, a sum equal to a one-third share of the sale price. When the case went to court, Yauger pointed to her monthly payments and labeled those payments a share of the profits. She argued that this payment demonstrated that she was a partner, based on proof of existence. Should the court grant Yauger partner status and give her a share of the proceeds from the sale of the business? Explain.
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