Establishing whether a partnership exists according to the Partnership Act

In the case of Kang-Kem v Paine [2004] the plaintiff; Kang-Kem has taken run on the suspect; Paine, to try and establish whether or non there is a legally binding league amongst the 2 parties. The federation Act 1892 Section 1. Defines union as: Partnership is the relation which exists between persons carrying on a line of business in common with a view of profit Kang-Kem claims that they and the suspect; Paine commenced occupation as a partnership in 1992 and argon assuage involved in a continuing partnership for the usance of running a eatery known as Milano nuclear fusion reaction Café Restaurant at The Junction, Newcastle and a eatery known as Milanos on the Lake at Pelican on Lake Macquarie and enacts that the affairs of the partnership be wound up, that a receiver be appointed and that an compensate be taken. Paine, in response; states that they were the sole proprietor of the colligation restaurant, with only the operating rights being given to the pla intiff as perspicuous with the sublease; that she opened an ANZ bank account in her physique shortly before the Junction restaurant opened and deposited in it $100,000 to be used for the fit-out of the restaurant. The suspect says that she lent $100,000 to the plaintiff and that he acknowledged his obligation to repay.

The court came to the conclusion that a partnership did not exist, arising from a certain number of facts: §         The lessee of the premises was the defendant. The spunk of $100,000 needed to set up the restaurant was provided by the defendant. §         Income a nd disbursal relating to the Junction rest! aurant were included in income tax returns of the defendant in certain years. §         The plaintiff himself represented the Junction restaurant business to have been owned solely by the defendant until about 1997, If you want to get a full essay, rule it on our website: OrderCustomPaper.com

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