Question

Fact Pattern for Discussion Question 5 Brian, Jessica, and Tyson start a pet sitting and dog walking business together. They agree to be partners in the business, but do not formalize their partnership in a written agreement. They do business as "Pet Lovers R Us" and open a bank account in the name of the business with all three partners on the account. Brian contributes 60% of the starting capital, and Jessica and Tyson each contribute 20%. Nothing is decided about how profits will be divided. Brian assumes that he will be entitled to 60% of the profit, in accordance with his contribution. Jessica and Tyson, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply and what will be the result? How could this dispute have been avoided?

          Fact Pattern for Discussion Question 5

Brian, Jessica, and Tyson start a pet sitting and dog walking business together. They agree to be partners in the business, but do not formalize their partnership in a written agreement. They do business as "Pet Lovers R Us" and open a bank account in the name of the business with all three partners on the account. Brian contributes 60% of the starting capital, and Jessica and Tyson each contribute 20%. Nothing is decided about how profits will be divided. Brian assumes that he will be entitled to 60% of the profit, in accordance with his contribution. Jessica and Tyson, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue.

What law will the court apply and what will be the result? How could this dispute have been avoided?

Added by Laura W.

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