Business Law

Johnson, Stevens, and Hall were creditors of Fender, who operated a grain elevator known as Fender's Elevator. The business was about to fail when the three creditors agreed to take title to the elevator property and to satisfy all the debts. It was also agreed that Fender would continue as manager of the business at a salary of $4,500 per month and that all profits of the business were to be paid to Johnson, Stevens, and Hall. It was further agreed that Fender's employment could be terminated at anytime and Fender had the right to quit at any time. Fender accepted the offer and continued to operate the business as before. The agreement worked very well and the business provided sufficient profit over the next few years so that the three were able to recover all of the payment they had originally made. Were Johnson, Stevens, and Hall partners? Explain.