37–1. Partnership Formation. Daniel is the owner of a chain
of shoe stores. He hires Rubya to be the manager of a new
store, which is to open in Grand Rapids, Michigan. Daniel,
by written contract, agrees to pay Rubya a monthly salary
and 20 percent of the profits. Without Daniel’s knowledge, Rubya represents himself to Classen as Daniel’s
partner and shows Classen the agreement to share profits.
Classen extends credit to Rubya. Rubya defaults. Discuss
whether Classen can hold Daniel liable as a partner.