Chapter 6 TUTO Partnership PDF

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VIEW OF PROFIT -The business must be one carried on with a view of profit, it fulfils the definition of section 3(1) - The business must be carried out with the intention of making a profit -If the activity of a business is not being carried on with an intention to make profit, even if that profit is not actually realised, then that business cannot be a partnership. -For example, clubs, societies and charity organizations are not formed with a view to making a profit, so it cannot be considered as a partnership. Case Law: Cox V Coulson (1916) 2 KB 177 Facts: Coulson agreed to provide his theatre for one Mills production. Under the agreement, Coulson was to receive 60% of the gross taking while Mill received only 40%. During the play, the Plaintiff was shot by the other actor. She sought to make Coulson liable because she thought that Coulson and Mill were partners. Held: They were not partners because they were not sharing profits but sharing gross returns....