Question
Thomas, a young entrepreneur, started a construction business. Ari, who owned and operated a radio station, agreed to run some advertisements for him. Unfortunately, Thomas
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Thomas, a young entrepreneur, started a construction business. Ari, who owned and operated a radio station, agreed to run some advertisements for him. Unfortunately, Thomas was unable to pay Ari for the services. In the hopes of making the business profitable so that he could get paid under the broadcasting contract, Ari, without remuneration, assisted Thomas in his business. In fact, on behalf of Thomas, Ari signed a contract with Lopez for plumbing and heating supplies. When payment for the supplies was not forthcoming, Lopez sued Ari, claiming that Ari was Thomass partner and therefore was responsible for the debt. Ari claimed that, when he signed the contract, he was acting as Thomass agent.
What difference and consequences does it make whether Ari is considered to be Thomass agent or his partner pursuant to the Partnership Act of Ontario?
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