Partnership

To determine whether Nazir and Omar has a valid partnership or not.We need to look and understand the definition of partnership by Partnership Act, 1961.S.3(1) define partnership as ‘Partnership is the relation which subsists between person carrying on a business in common with a view of profit’.5 words need to be examine,first is ‘relation’,’person’,‘a business’,’carried in common’ and ‘with a view of profit’ .We will look into what type of relation they are in,is the business running carried in common and are they doing the business with a view of profit.The words ‘person’ and ‘a business’ already stated that these 2 person have decided to go a business together.The business is rental off the ballroom and function hall for seminars,weddings,parties and other similar events. First,we will examine the words ‘relation’ between Nazir and Omar.This 2 person can be assumed that they have informal relation.This because the have conduct that they are partner.This similar to cases of ‘Chan Yin Jee VS William Jack.In this cases ,both partner shown they are partner by doing some work for the business.Same with Nazir and Omar situation.Nazir has convert a building for the business taking place ,meanwhile Omar contribute RM 50000 and does all the paperwork.Nazir actually doing some work for the business by promoted their ballroom and function hall to his friends and family.So,i think there is relation between these 2 person.The relation is informal and by conduct. We also need to look the rules for determining the existence of partnership as set out under s.4 that concerns 3 situations,joint tenancy and tenancy in common,sharing of gross return and receipt of share profits.S.4(a) rules have stated that a partnership does not exist just because any property that is held or owned jointly or common is used,and out of the use of the property there is profit.This regardless of whether such profit obtained is divided amongst the co-owners or tenants or not.There are sharing