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Joseph owns five acres of land. At one time Joseph used to work the land as a market garden, successfully growing vegetables that he sold.
Joseph owns five acres of land. At one time Joseph used to work the land as a market garden, successfully growing vegetables that he sold. However, growing older himself, he ran out of energy and let the land rest idle.
When Tony and Marco were retrenched they were each paid $ Tony and Marco were unable to gain other employment. They proposed to Joseph that they use their retrenchment pay to buy seeds, fertiliser and equipment and that they employ their time working Josephs land, as a market garden once again. They proposed Joseph should get half the gross profits, and themselves one quarter each. They said they would contribute $ each, annually, to cover expenses such as water, petrol, seed and fertiliser. Joseph agreed to their proposal though he told Tony and Marco not to purchase new equipment but rather to use his which was still in good order. Tony and Marco agreed to that. Joseph also said he would advise Tony and Marco about suitable crops and fertilisers, and he did so from time to time.
What is the nature of this business relationship?
AND
Would your answer to the above differ if a the three of them went around giving out business cards to third parties stating that they were "partners"? b Joseph was never consulted in any matter in relation to the business, and he did not bother to advise though he said he would?
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