Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 2

Case Problem with Sample Answer-Partnership Formation. Patricia Garcia and Bernardo Lucero were in a romantic relationship. While they were seeing each other, Garcia and Lucero acquired an electronics service center, paying $30,000 each. Two years later, they purchased an apartment complex. The property was deeded to Lucero, but neither Garcia nor Lucero made a down payment. The couple considered both properties to be owned "50/50," and they agreed to share profits, losses, and management rights. When the couple's romantic relationship ended, Garcia asked a court to declare that she and Lucero had a partnership. In court, Lucero argued that the couple did not have a written partnership agreement and thus did not have a partnership. Did they have a partnership? Why or why not? [ Garcia v. Lucero, 366 S.W.3d 275 (Tex.App.-El Paso 2012)] (See Partnerships.) -For a sample answer to Problem 23-6, go to Appendix G at the end of this text.