DE FIESTA

CASE NO. 18
INTENT OF THE PARTIES
Murphy v. Stevens, 645 P2d 82, 85

FACTS: The parties orally agreed to enter into a business relationship. Murphy
contended that the arrangement was a partnership; Stevens contended that the
arrangement was for a joint venture, to be followed by other joint ventures if
the arrangement worked out satisfactorily. Murphy testified that they agreed to
join each other in mineral exploration and development. Any consideration they
received would be split equally three ways. They were also to split the expenses
equally at an accounting each year, although the expenditures were initially to
be carried separately.

ISSUE: W/N a partnership existed

RULING: YES. A partnership as an association of two or more persons to carry

on as co-owners a business for profit. Persons who intend to do the things that
constitute a partnership are partners whether their expressed purpose was to
create or avoid the relationship. Stevens contends that Murphy and Schauss and
he only "agreed to agree" on projects concerning uranium exploration and
mining. There was sufficient evidence for the trial court to find that a
partnership existed.