The Money Doctor
1. Is “The Money Doctors” a partnership, and if so, who are the partners?
Main Issue:
To identify if “The Money Doctors” is a partnership and if so, who are the partners of the business.
Relevant Law:
Partnership is the relation which subsists between persons carrying on a business in common with a view of profit. There are four conditions in which all must be satisfy are the followings:
Agreement
Partnership relationship may be formed by deed, in writing, verbally and lastly by inference from the conduct of the parties. In Canny Gabriel Castle Jackson Advertising Pty Ltd V Volume Sales (Finance) Pty Ltd [1974] HCA 22; (1974) 131 CLR 321 where the court held that a partnership existed on four factors which were parties joined in a commercial enterprise, with a view to profit and mutual agreement towards all policy matters relating to the enterprise.
Business being carried out
Business includes any profession, occupation or trade. It is always a question of fact decided based on the circumstances of each case. Indicators of business could be also used but no one factor is decisive. However, the deciding factor to determine the existence of a partnership would be intention of the parties. In Evans v Federal Commissioner of Taxation (1989) ATC, the court held that it was not a business as it failed to have any substantial form of system and organization.
In common
Partnership only exists if business is carried on by either one or more partners (without the need of equal interest) on behalf of all partners. All partners should have mutual rights, obligations (state of agency) and have the right of say in the management of business. In KEITH SPICER LTD v MANSELL[1970] 1 WLR 333, the court held that Mansell is not liable for the cost of furniture as there was no evidence to suggest that a partnership exists as they had not been carrying on a business in common with a view of profit.
With a view to profit
Last conditions will be business must be
Main Issue:
To identify if “The Money Doctors” is a partnership and if so, who are the partners of the business.
Relevant Law:
Partnership is the relation which subsists between persons carrying on a business in common with a view of profit. There are four conditions in which all must be satisfy are the followings:
Agreement
Partnership relationship may be formed by deed, in writing, verbally and lastly by inference from the conduct of the parties. In Canny Gabriel Castle Jackson Advertising Pty Ltd V Volume Sales (Finance) Pty Ltd [1974] HCA 22; (1974) 131 CLR 321 where the court held that a partnership existed on four factors which were parties joined in a commercial enterprise, with a view to profit and mutual agreement towards all policy matters relating to the enterprise.
Business being carried out
Business includes any profession, occupation or trade. It is always a question of fact decided based on the circumstances of each case. Indicators of business could be also used but no one factor is decisive. However, the deciding factor to determine the existence of a partnership would be intention of the parties. In Evans v Federal Commissioner of Taxation (1989) ATC, the court held that it was not a business as it failed to have any substantial form of system and organization.
In common
Partnership only exists if business is carried on by either one or more partners (without the need of equal interest) on behalf of all partners. All partners should have mutual rights, obligations (state of agency) and have the right of say in the management of business. In KEITH SPICER LTD v MANSELL[1970] 1 WLR 333, the court held that Mansell is not liable for the cost of furniture as there was no evidence to suggest that a partnership exists as they had not been carrying on a business in common with a view of profit.
With a view to profit
Last conditions will be business must be