At least six months before the Summer Olympic Games in Atlanta, Georgia, Stafford Fontenot and four others agreed to sell Cajun food at the games and began making preparations. On May 19, the group (calling themselves "Prairie Cajun Seafood Catering of Louisiana") applied for a business license from the county health department. Later, Ted Norris sold a mobile kitchen to them for $40,000. They gave Norris an $8,000 check drawn on the "Prairie Cajun Seafood Catering of Louisiana" account and two promissory notes, one for $12,000 and the other for $20,000. The notes, which were dated June 12, listed only Fontenot "d/b/a Prairie Cajun Seafood" as the maker (d/b/a is an abbreviation for "doing business as"). On July 31, Fontenot and his friends signed a partnership agreement, which listed specific percentages of profits and losses. They drove the mobile kitchen to Atlanta, but business was "disastrous." When the notes were not paid, Norris filed a suit in a Louisiana state court against Fontenot, seeking payment. (See Formation and Operation.) a. The first group will discuss the elements of a partnership and determine whether a partnership exists among Fontenot and the others. b. The second group will determine who can be held liable on the notes and why.

See the explanation for the answer.

Explanation:

To be considered a partnership, a business relationship must meet the following criteria;

1, the parties must have consented to form a partnership and to share in business's profits and losses.

2. The parties must jointly own the ventures

3. The parties must have equal right to manage the operation.

a)

Here, several months before the Olympics, F and his friends agree to sell Cajun food in Atlanta and applied for a license as a group. Although, a written partnership agreement was not sign until a couple of months later. F and his friends had a oral agreement to form an association and to work together towards a common goal until they bought the mobile kitchen. The written agreement contains specific divisions of profits and losses. Thus, a partnership existed between F and his friends.

(b) In signing the notes to buy the kitchen, N received an $8,000 check drawn on "C food" account and two promissory notes as well as P as the maker. which is partnership firm of F and his friends. F was acting on behave of this partnership in this deal. Therefore, partnership is liable on the notes.

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