Smith wishes to develop a sea-front block of land he owns on the South Coast, by building a hotel and accommodation complex. He approaches Banks, a private financier, to obtain a loan for the project. Banks believes the project to have a bright future and agrees to make the loan. However, as the hotel will not earn money for two years during construction work, Banks agrees to Smith paying no interest during this initial period but interest thereafter at a rate which increases proportionately with profits. A document entitled "Loan Agreement" is prepared and signed by both Smith and Banks. Banks remains interested in Smith's progress and gives valuable assistance during the construction phase. On the opening day for the hotel, Smith says to Banks: 'Why don't you come in with me? We'll form a company to take over the operation.' For one year following the opening, Banks regularly advises Smith with respect to matters of hotel management, although no company is formed. At the end of the year, Banks maintains that as the two are partners, he should be entitled to an equal share of the substantial profits for the year rather than the lesser prescribed interest under the Loan Agreement.

Under Partnership Law, is Banks legally correct in this assertion?