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Paul Irving V. Farmers Grain Company

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The plaintiff in this case is Farmers Grain Co., Inc. and the defendant is Paul Irving. Larry Foster set up a dairy farming operation on land owned by Paul Irving, which was written up in a lease between the two parties. The lease stated that Irving would provide the land, Foster was responsible for day-to-day operation, and each would furnish fifty percent of the cattle, each would pay fifty percent of the feed expenses and other expenses, and each would receive fifty percent of the gross income. Foster, in charge of day-to-day operations purchased feed and other farming supplies on open account from Farmers Grain Company. Due to financial difficulties, Foster stopped operating the dairy farm and took personal bankruptcy, leaving an unpaid balance of over $27,000 with Farmers Grain Company. Farmers Grain Company filed a suit against Foster and Irving, but Fosters liability was discharged in bankruptcy. Farmers Grain …show more content…
The Uniform Partnership Act defines a partnership as, “an association of two or more persons to carry on as co-owners a business for profit.” Irving used the “intention to associate” and the landlord-tenant relationship concept of law to argue that Foster and himself were not operating under a partnership, and he was therefore, not liable for the open balance. After examination of the case and the contract, the appellate court concluded, “the conduct of Foster and Irving did not evidence an intent to create a partnership… there was nothing in the evidence to indicate that Irving exercised joint control of the farming and dairy operations. We therefore hold that the trial court was correct in holding that the existence of a partnership between Foster and Irving was not supported by substantial evidence and that Irving was not liable for the balance due to

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