Blank and Jones are in their first semester of law school and are taking partnership and contract law with Professor Herman. As they became good friends due to being in study groups in prior classes, they vent to each other about their struggles of the high cost of their law school tuition and the low amount of financial aid they receive each semester. As they are pondering how to make a little extra money to help overcome their financial situation, they decide to start a car washing service to be housed at the law school. The law school they attend is very prestigious and the students have been complaining about dust in the parking lot due to construction of the new wing of the law school. Blank and Jones think that their car wash business will be a “hit.” They go out and purchase all necessary supplies to start their car washing service. They decide every Tuesday and Thursday from 4:00 p.m. to 6:00 p.m. they will meet in a designated parking lot at the law school and wash cars. They decided to charge $100 per car. They also decided that all profits and losses will be split equally as well as splitting the cost equally of all supplies purchased. They officially started last week and called themselves B&J Primetime Car Washing did partnership formation exist between Blank and Jones?

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Blank and Jones are in their first semester of law school and are taking partnership and contract law with Professor Herman. As they became good friends due to being in study groups in prior classes, they vent to each other about their struggles of the high cost of their law school tuition and the low amount of financial aid they receive each semester. As they are pondering how to make a little extra money to help overcome their financial situation, they decide to start a car washing service to be housed at the law school. The law school they attend is very prestigious and the students have been complaining about dust in the parking lot due to construction of the new wing of the law school. Blank and Jones think that their car wash business will be a “hit.” They go out and purchase all necessary supplies to start their car washing service. They decide every Tuesday and Thursday from 4:00 p.m. to 6:00 p.m. they will meet in a designated parking lot at the law school and wash cars. They decided to charge $100 per car. They also decided that all profits and losses will be split equally as well as splitting the cost equally of all supplies purchased. They officially started last week and called themselves B&J Primetime Car Washing

did partnership formation exist between Blank and Jones?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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