Sole Proprietorships and Partnerships Case

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Issue Statement

Analysis $$

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Risk Reduction

Jeff Blogg and his son Cliff carried on a meat delivery business $($called "Blogg Fine Meats Company"$)$ for several years, beginning in $1992,$ although they never put together any kind of formal document that reflected their business arrangement, nor did they register their business at Registrar of Companies. Sometimes Blogg, Sr$.$ would be driving the truck and other times Blogg, Jr$.$ would do so$.$ Their customers saw them as being interchangeable. In $1997$ Jeff told Cliff, $$I$$m giving you the business. I$$ve got other fish I want to fry.$$ Again, nothing in writing was put together or signed. However, Jeff offered to help out in making deliveries in case Cliff was $$ever in a fix and needed somebody.$$ Many times he did so when Cliff was sick or was otherwise unable to show up at work. Jeff occasionally helped out Cliff in handling things back at the office, answering the phone, etc. In $2001$ Cliff became seriously indebted to Fowler for over $$7,000$ relating to the business. Fowler had dealt with both father and son on many occasions between $1992$ and $2001$; however, it was in his dealings with Cliff that the debt actually was incurred. Fowler sued both son and father as partners to recover the debt. Although Cliff didn$$t have many assets, Jeff did.