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By using the IRAC method
Sally and Tom choose to go into business selling discounted merchandise through their website e-buy. They sign a partnership agreement that wants Sally to contribute $12,000 and Tom to contribute $8,000 in capital to start the firm. The agreement as well states that only Sally will have the authority to bind the partnership in deals with third parties, but the agreement says nothing about the management of the firm or a division of profits. Without Sally's knowledge Tom tells United Computer Products Inc. that he means the firm as well as signs a contract with United to buy hard drives for resale on e-buy. In the first year e-buy makes a profit of $50,000. At the end of the year Tom as well as Sally have a falling out. At trial there are two key questions one question is- How will the profits be split among the two? Most greatly will e-buy be held to the contract with United Computer Products, Inc.?
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