Legal Environment of Business 8th Edition by Henry Cheeseman

Exercise 3

Illegal Contract Andrew Parente had a criminal record. He and Mario Pirozzoli, Jr., formed a partnership to open and operate the Speak Easy Café in Berlin, Connecticut, which was a bar that would serve alcohol. The owners were required to obtain a liquor license from the state of Connecticut before operating the bar. Because the state of Connecticut usually would not issue a liquor license to anyone with a criminal record, it was agreed that Pirozzoli would form a corporation called Centerfolds, Inc., to own the bar, sign the real estate lease for the bar in his name, and file for the liquor license in his name only. Pirozzoli did all of these things. Parente and Pirozzoli signed a partnership agreement which acknowledged that Parente was an equal partner in the business. The state of Connecticut granted the liquor license, and the bar opened for business. Parente and Pirozzoli shared the profits of the bar. Six years later, Pirozzoli terminated the partnership and kept the business. Parente sued Pirozzoli for breach of the partnership agreement to recover the value of his alleged share of the business. Parente's share would have been $138,000. Pirozzoli defended, arguing that the partnership agreement was an illegal contract that should not be enforced against him. Is the partnership agreement an illegal contract that is void and unenforceable by the court? Parente v. Pirozzoli, 866 A.2d 629, Web 2005 Conn.App. Lexis 25 (Appellate Court of Connecticut)