The investment was fortunate, for oil was discovered near the land, and its value increased many times. Is the oil land partnership property? Why or why not?
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James and Suzanne engaged in the grocery business as partners. In one year, they earned considerable money, and at the end of the year, they invested a part of the profits in oil land, taking title to the land in their names as tenants in common. The investment was fortunate, for oil was discovered near the land, and its value increased many times. Is the oil land partnership property? Why or why not? |
Explanation
Evidence supporting the argument that the oil land property is of the partnership:
As per the Revised Uniform Partnership Act, whichever property is purchased with partnership funds, is presumed as a property of the partnership. The name in holding the title does not matter in such a case. It is stated that the investment is made out of the profits earned from the previous business partnership. Based on this, it can be considered that such property is a partnership property.
Evidence supporting the argument that the oil land property is not of the partnership:
Only the grocery business is entered into as partners by both individuals. This does not clarify the status of the new business, which may have been held jointly.
Sample Response
The case talks about Individual J and Individual S, who are partners in a grocery business and they later acquire an oil land.
There are two sides of the argument:
The oil land property is of the partnership.
The oil land property is not of the partnership.
