Partnership Agreement Case Studies

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Question 1 Justices Davies and Wilcox found that no partnership existed for several different reasons. Justice Davies pointed out that the parties failed to reach a final agreement on several key terms that would have been crucial to a partnership agreement. These included a failure to determine what each party would contribute, how the development would proceed, and what would be done with the hotel once it was refurbished. While these details could have been determined because it was a commercial agreement, it was not necessary to find that a partnership existed in order to grant relief to one of the parties. Justice Wilcox agreed that there was simply too much speculation surrounding the project for the court to find that the parties had entered into a partnership agreement regarding the future development of the hotel. However, the fact that they were not in a partnership agreement to develop the property into a hotel does not mean that the parties were not, in fact, acting as partners in many different ways. They entered into an agreement to explore the possibility of developing the property in question. The terms of that agreement were outlined with much greater specificity than any proposed partnership agreements. They agreed that Sharma and Karziac were each to be responsible for 50% of the costs involved with investigating the possibility of developing the Dickson hotel. The investigation resulted in approximately $440,000 in additional value to the original
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