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Ari owned a popular food-truck concept but lacked cash to expand. Blake contributed $60,000 to buy a second truck and spent weekends negotiating event contracts. Ari and Blake signed a short agreement stating that Blake was an "independent consultant, not a partner." The agreement also provided that Blake would receive 35 percent of net profits from the second truck after expenses, would approve menus and event bookings, and would share any annual losses from that truck in the same 35 percent proportion.
For eight months, Ari and Blake both negotiated with customers, signed event contracts, paid vendors from a common account, and introduced the business as "our second truck." When the truck caused a catering loss, Blake denied partnership status and argued that he was only a consultant because the written agreement said so.
(a) Did Ari and Blake likely form a general partnership as to the second truck?
(b) What facts most strongly support and undermine partnership formation?