Pete is a Wairarapa dairy farmer. His friend, Joe, has just returned from a cheese making course overseas. Together they decide to set up a cheese making business on Pete's farm. Pete will supply the milk from his cows, and he also has a shed suitable for the cheese making operation. Pete and Joe each pay for half of the equipment needed to set up the cheese making business. Joe contributes his cheese making expertise to the enterprise, although both have a say in the commercial decisions of the business. After the general business costs have been paid, the remaining profits are split 60% to Pete and 40% to Joe. Pete gets a 60% share because he supplies the milk. The cheese is sold under the name "Pete & Joe's Country Cheeses".

Unfortunately, the business does not go as well as expected, and Pete and Joe decide to end the business.

Required:

Advise Joe:

(a) Whether the business is a partnership governed by the Partnership Act 1908; and

(b)  Whether he can claim that half the farm and shed belong to him.