In the case of Constancio Castro and Orlando Ortiz, what can be inferred about their agreement?

Prepare for the Partnership Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The correct choice indicates that Constancio Castro and Orlando Ortiz are partners in the car repair business. This inference is derived from the dynamics typically associated with their agreement, which suggests mutual participation in a business venture aimed at generating profits.

In a partnership, two or more individuals contribute skills, labor, or capital, and share in the profits and losses of the business. The reference to a car repair business implies that both parties are likely engaged in activities related to that business, which may include providing services, managing operations, or sharing in decision-making. This collaborative effort is a hallmark of a partnership.

When evaluating the other options, it is clear that they suggest alternate arrangements which do not capture the essence of a partnership. A lease agreement would imply a landlord-tenant relationship that does not involve shared ownership or profits, which contradicts the partnership structure. The notion that Orlando is solely leasing the property or that Constancio operates independently also detracts from the cooperative nature of a partnership. Effective partnerships rely on interdependence, whereas these statements suggest a lack of collaboration or shared interest, which is not consistent with the concept of a partnership in business.

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