A partnership is the relationship between persons who carry on a business together in common with the view of making a profit.
First of all we should consider, Is there any valid agreement between the parties?
In this case, Jason, Tom and Rupert have no partnership agreement. The partnership agreement can be oral but it is recommendable to put the agreement in writing because a partnership is a contractual relationship itself. So the relationship between them may be not a partnership relationship. However, based on the definition of partnership, there are three essential elements that are required for the existence of a partnership. The following factors have to provide in order to conclude that partnership exist among the parties:
Carry on a business
In common; and
With a view of profit
Firstly, we consider, Are the parties carrying on a business? According to the Partnership Act define that business includes trade, occupation and profession and carrying on a business implies some continuity or repetition of action. Jason, Tom and Rupert work together and run a Real Estate Agency which is considered to be a carrying on business with a view of continuity.
Secondly, is the business carried on in common?
We can say partnership is a branch of agency law because the meaning of partnership means the partners act as agents for each other. Carry on a business in common mean the business must be carry on by, or on behalf of, all the partners. In this case Tom, Jason and Rupert are working together to run a business so they must to take an active role in the affair of business. We can see the case of Checker Taxicab Co Ltd v Stone (1930). The court held that the relationship between the parties was not partnership because it was not a business being carried on by persons in