Partnership Essay

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Partnership Assignment What is the issue? The following issues are discussed hereafter • If the “Money Doctors” is a partnership and if so who are the partners. • Who is reliable for the contract with ECO? • Who is liable to Mrs. McTavish? What is the Law? According to statues of Partnership Act 1895, (W.A.), Section 7(1), partnership is a relationship which subsists between persons carrying on a business in common with a view of profit. Also to be noted is the case: Canny Gabriel Castle Jackson Advertisement PTY. LTD. v Volume Sales (Finance) PTY. LTD. [1974] HCA 22 ;( 1974) 131 CLR 321. In this case on partnership, the court held that there was a partnership when both the parties had a joint venture with a view to profit. Consider the case: Evans v Federal Commission of Taxation (1989) ATC. In this case where the definition of business was concerned, the court confirmed the definition of business characteristics on lines of profit motive, scale of activity, application of commercial principles, characteristics of business ventures, repetition, continuity & system. By Partnership Act 1895(W.A.) ss10,12, the firm in which a partnership business is carried out is called firm name & Business Names Act 1942-46, (W.A.), if the name of the business is different from the name of the partners then it would have to be registered under this Act. In Partnership Act 1895(W.A.) section 8(1A.5), a contract for the remuneration of a servant or agent of any person engaged in a business by a share of the profit of business does not make that servant or agent a partner in the business or give him rights of a partner. Also according to the statutes of Partnership Act 1895(W.A.) s 8(1A.7), The advance of money by way of loan to a person engaged, or about to engage, in any business on a contract with that person that the lender shall receive a rate of interest varying

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