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In each of the following cases, indicate whether a partnership exists for the purposes of partnership law . Please give reasons for your answers .
In each of the following cases, indicate whether a partnership exists for the purposes of partnership law . Please give reasons for your answers .
- (a)Patricia owns a business and employs Robert as manager of the business . Robert is paid an agreed salary and is also entitled to 20 per cent of the net profits of the business .
- (b)Henri owns a factory jointly with Ian . Ian runs an auto electrician's business from that
- factory . Henri receives 10 per cent of the net profits from Ian's business as rent for
- Henri's share of the factory .
- (c)Uwe sold his timber business to Vera . It was agreed that the amount payable for the
- 'goodwill' of the business would be paid to Uwe in five annual instalments, with each instalment comprising 10 per cent of the net profits of the business for each of those five years .
- (d)Xander, Yifei and Zac are partners in a legal firm . Zac dies . Xander and Yifei, the remaining partners, pay Zac's widow an annuity for the rest of her life . Is the widow a partner?
- (e)Yanni wants to start up a hardware business but is short of capital . Zoe, a friend, lends him $10,000, with a signed agreement that Zoe will receive half of the share of the profits at the end of the financial year .
- (f)Ali and Bill decide to stage a comedy festival . Ali is to provide the comedians and be responsible for paying them . Bill is to provide the musicians, refreshments and souvenirs and be responsible for paying for them . Gross returns are to be shared 50/50 .
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