Nasir, a house painter, and Miguel, a general contractor, metfor lunch one day. During lunch, Nasir and Miguel decided to gointo business together, wherein Miguel would send paintingreferrals to Nasir, Nasir would perform the work and both Nasir andMiguel would split the profits from the business evenly. Miguel hasa large net worth and so he was worried about personal liability inthe event Nasir caused any damage and was sued. To reassure Miguel,Nasir takes out a piece of paper and writes up a very simpleagreement detailing how the business will be run, and that Miguelwill not have any management of the day to day operations of thebusiness and will instead only provide upfront capital of $2,000 tohelp the business get off the ground. Both of them sign thedocument drafted by Nasir and go their separate ways. No documentsare ever filed with the State. Six months later the house paintingbusiness has earned $50,000. Miguel has never provided a referralor performed any of the work, so Nasir has elected not to payMiguel. Miguel sues Nasir seeking 50% of the income earned by thehouse painting business. What is the outcome?
Use IRAC method for this question.
