Julian is a successful hairdresser at a busy hair salon but is keen to start his own salon. However, Julian knows he will need a general manager to carry out the administrative and marketing side of the business. Terrence is an experienced business person, with a marketing background.

Julian and Terrence meet for lunch and decide they would like to go into business together running a new hair salon called "Snippy Snip". Over lunch they decide the following matters:

• Julian will contribute $35,000 in starting capital and Terrence $10,000.
• Julian will doing all the hair styling and run the day to day management of the salon. Terrence will undertake any administrative or marketing work that is required from time to time.
• All profits and losses will be shared evenly.
• All transactions over $10,000 need to be agreed by both of them.

No formal document is drafted as they do not trust lawyers. The following week, they meet with a hair salon product supplier and do not refer to each other as 'partners' but as 'associates.'

With reference to relevant case law and legislation, discuss whether Julian and Terrence are in a partnership?