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the Century project. After the six payments were made, title of
the equipment would pass to Cities. Ms. Jackson, who had
attended 1 year of law school, drafted the lease agreement for
the leasing transaction with petitioner. Petitioner remained
responsible for the maintenance of the equipment. Petitioner
paid Cities’ $40,000 insurance premium to cover the heavy
equipment used in the Century project. A one-paragraph August 1,
1986, document entitled "AGREEMENT" recites that "Cities agrees
to pay Stan Zurn 50% of its net profits on the MCM project as
compensation and fees for acting as a joint venturer by advancing
funds for construction and equipment purchases related to the
MCM/Cities project."
On September 30, 1986, Ms. Jackson prepared an agreement
acknowledging receipt of $90,000 from, and a promise to repay
$100,000 to, petitioner. At this time, Cities expected to obtain
approval for a line of credit. Accordingly, Ms. Jackson executed
an "Assignment of the Progress Payments" to document petitioner’s
right to the payments if he chose to enforce his claim.
The Century project began in September 1986. In a September
30, 1986, letter, Ms. Jackson, as president of Cities, assigned
all MCM progress payments to petitioner. On October 17, 1986,
Ms. Jackson executed an agreement for the benefit of petitioner.
The agreement, which referred to petitioner as a "silent joint
venture partner", provided that Ms. Jackson promised to reimburse
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