Bob and Chris were business partners and they run a surf shop Star Surf at Mullaloo Beach in Perth. The location of the shop was perfect for running a profitable business. However, because of the COVID-19 outbreak and boarder closure, the business was having financial difficulties.

Andy, Bob and Chris used to be old school fiends. Andy had recently inherited a lot of money, so Bob and Chris reached out for a financial support from Andy. They asked him (Andy) to lend the business $100,000 to enable them to buy sufficient stock for the summer season.

Andy wanted to help his friends but also wanted to ensure that he would get his money back. He agreed to lend Bob and Chris the money in return for a payment of $10,000 per year out of the gross returns of the shop. The terms of the loan also provided that Bob and Chris would consult Andy about any major contracts entered into by the business and gave him a right to inspect the accounts at regular intervals. Andy also agreed to share the profit and loss of the business in that loan agreement.

Discuss whether or not a partnership exists between Andy, Chris and Bob. Give reasons and justify your response considering relevant common law principles and citing case authority whenever relevant. Do not consider any matters that might arise in the circumstances under any legislation other than the Partnership Act.