Sabin and Tyler agree while talking on the phone to form a partner?ship. Their partnership agreement is legally binding
A) only if a third person knows of the agreement.
B) only if the agreement is reduced to writing.
C) only if the parties exchange valid consideration.
D) without more.

Question

Quizplus · Accepted Answer

The formation of a partnership does not require any formalities such as reducing the agreement to writing or exchanging valid consideration. As long as Sabin and Tyler intend to be partners and mutually agree on the terms of their partnership, the partnership is formed without the need for any additional steps. However, it is always a good idea to have a written partnership agreement to avoid any disputes in the future.

Sabin and Tyler Agree While Talking on the Phone to Form