In which one of the following situations will a court find that a partnership exists?
A)Joe sells his business to Harry for $10 000 for the assets and a further $20 000 for goodwill,the goodwill portion to be paid at a rate of 20% of the profits from the business until paid.
B)Joe is a partner in a shoe store and sells his share of the business to Harry without the consent of his partner.
C)Joe and Mary promote several dances at school and split the profits.
D)Joe,a partner in a law firm,dies and Joe's widow takes over Joe's share of the profits.
E)Joe and Mary,while attending university,purchase a house and share the profits from the rent after deducting expenses.

Question

Quizplus · Accepted Answer

A partnership exists when two or more people carry on a business with a view to a profit. In option C, Joe and Mary promote several dances and split the profits, indicating that they are carrying on a business activity with a view to making a profit, and therefore a partnership exists. In options A, B, D, and E, while there may be a business transaction or arrangement involved, there is no indication that there is a sharing of profits or intention to carry on a business together.

In Which One of the Following Situations Will a Court