Question
.Thomas Smith is Wilson Smith's famous and wealthy cousin. Thomas and Wilson grew up playing together when their two families got together for holidays, but
.Thomas Smith is Wilson Smith's famous and wealthy cousin. Thomas and Wilson grew up playing together when their two families got together for holidays, but have not seen each other since they both went off to college, well over 5 years ago. Wilson is struggling to pay off his college loans, works full-time in yard maintenance, but starts a small business on the side. Wilson's new business is designing T-shirts. Thomas knows nothing of his cousin's business and stumbles into Wilson's shop one day looking to order 25 T-shirts for a flag football team that he supports.
Jamaree walks into the shop and sees Thomas and Wilson giving each other a hug. Jamaree does not know Wilson, but he recognizes Thomas Smith as a quarterback for a local NFL team. He also notices that the name on the shop window is, Smith's T-Shirt Designs. After Jamaree asks for an autograph from the famous quarterback, he asks if Thomas and Wilson own the business together. Both cousins look at each other and laugh. Thomas says, "sure, you should place your T-shirt order with my cousin Wilson here, as he's my partner! I like the sound of Smith T-Shirt Designs!" Thomas tells Wilson that he'll 'catch up' with him soon, and leaves the shop. Jamaree tells Wilson, "Of course with Thomas Smith being your business partner, I'll order 33 T-shirts for my students. Jamaree places an order for 33 T-shirts, pays $350 and tells Wilson that he needs the T-shirts in 1 week.
Wilson is overwhelmed with work, and orders the wrong color and fabric for Jamaree's order, and is several days late in delivering them to him. Jamaree rejects the T-shirts, and orders them from a different company at a much higher price, and is forced to pay an express delivery fee. Wilson apologizes and tells Jamaree that he has no money to compensate him for the loss. Jamaree tells Wilson that she intends on suing his business partner, Thomas Smith, for breach of contract.
Based on this scenario, the court will probably find that:
A. Thomas may be sued for the breach of contract because Thomas is a partner in fact and Wilson must split his annual business's losses and profits with Thomas.
B. Thomas may be sued for the breach of contract because Thomas is a purported partner in this scenario.
C. Thomas may not be sued for the breach of contract because Jamaree had a duty to ask to see the partnership agreement before doing business with Wilson.
D. Jamaree cannot sue Thomas unless he can prove that Wilson and Thomas were sharing gross revenues and management of the business.
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