Law of associations partnerships
How to answer a partnership question
1. Identify the issue.
2. Does the issue rely on the relationship being a partnership?
3. • The carrying on of a business;
• In common;
• With a view to profit.
Carrying on of a business
Define business – S1B - Partnership Act 1892 (NSW) - Act: Business is every trade, occupation or profession. As well as S. 45
Legislation
- Section 1 of the Partnership Act 1892 (NSW) provides that :
(1) Partnership is the relation which exists between persons carrying on a business in common with a view of profit and includes an incorporated limited partnership. If the definition in s 1 of the Partnership Act 1892 (NSW) is satisfied then the law of partnership may apply. If a partnership is not proved it may be possible to apply other principles of trust or equity to the fact scenario.
Cases
Canny Gabriel Castle Advertising Pty Ltd & Anor v Volume Sales (Finance) Pty Ltd (1974) => this case suggests that the emphasis which is to be placed on the continuity of “business” is not heavy to a point of absolute decision.
Our conclusion that the joint venture was a partnership, from which the parties anticipated profits and provided that the advance by Volume Sales to the ‘joint venture’ should be a first charge upon profits and that upon the repayment of such sum the profits should be divided equally, rests upon the following considerations: 1. the parties became joint venturers in a commercial enterprise with a view to profit;
2. profits were to be shared (see Partnership Act 1892 as amended (NSW) s 2(3));
3. the policy of the joint venture was a matter for joint agreement and it was provided that differences relating to the affairs of the joint venture should be settled by arbitration (see cll 7 and 9);
4. an assignment of a half interest in the contracts for the appearances of Cilla Black and Elton John was attempted, although, we would have thought, unsuccessfully;
5. the parties were concerned with the
1. Identify the issue.
2. Does the issue rely on the relationship being a partnership?
3. • The carrying on of a business;
• In common;
• With a view to profit.
Carrying on of a business
Define business – S1B - Partnership Act 1892 (NSW) - Act: Business is every trade, occupation or profession. As well as S. 45
Legislation
- Section 1 of the Partnership Act 1892 (NSW) provides that :
(1) Partnership is the relation which exists between persons carrying on a business in common with a view of profit and includes an incorporated limited partnership. If the definition in s 1 of the Partnership Act 1892 (NSW) is satisfied then the law of partnership may apply. If a partnership is not proved it may be possible to apply other principles of trust or equity to the fact scenario.
Cases
Canny Gabriel Castle Advertising Pty Ltd & Anor v Volume Sales (Finance) Pty Ltd (1974) => this case suggests that the emphasis which is to be placed on the continuity of “business” is not heavy to a point of absolute decision.
Our conclusion that the joint venture was a partnership, from which the parties anticipated profits and provided that the advance by Volume Sales to the ‘joint venture’ should be a first charge upon profits and that upon the repayment of such sum the profits should be divided equally, rests upon the following considerations: 1. the parties became joint venturers in a commercial enterprise with a view to profit;
2. profits were to be shared (see Partnership Act 1892 as amended (NSW) s 2(3));
3. the policy of the joint venture was a matter for joint agreement and it was provided that differences relating to the affairs of the joint venture should be settled by arbitration (see cll 7 and 9);
4. an assignment of a half interest in the contracts for the appearances of Cilla Black and Elton John was attempted, although, we would have thought, unsuccessfully;
5. the parties were concerned with the