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Rachel asked Bret to work with her interior design business. At the time, they were in...

Question:

Rachel asked Bret to work with her interior design business. At the time, they were in a romantic relationship. Bret was involved in every aspect of the business – bookkeeping, marketing, and design – but he did not receive a salary. He was reimbursed, however, for business expenses charged to his personal credit card. In addition, Rachel used the same credit card for business expenses. Bret took no profits from the firm, saying that he wanted to “grow the business” and “build sweat equity.” When their personal relationship ended, Rachel fired Bret. Make Bret’s argument that they had formed a partnership and thus he was entitled to half the profits. This question is not asking for a conclusion, just his legal argument that he is entitled to half the profits.


Answers

Answer

Here Bret is not entitled to half of the profit of this firm. because there is no legally registered partenership among them .he is not a legal partner of rachel .he is only an implied partner .so there is no need to share the profit to bret .it is better to provide some compensation .

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