Partnership Case Law Exam Revision

Question 1

What does not prove the existence of a partnership

3 circumstances

Answer 1

1. Owning property jointly or in common
   - Sharpe v Carswell (1910)
2. Sharing of gross returns
   - Cox v Coulson (1916)
3. Parties may share profits without being partners (provide examples)

Question 2

Fiduciary duties of a partner

To Disclose S.28

Answer 2

To keep proper accounts

Inform fellow partners about matters which may affect the firm

Case: Law v Law (1905)

Question 3

Fiduciary duties of a partner

To Account S.29

Answer 3

To inform fellow partners of any profit made or benefit received as a result of his position as a partner / or as a result of using the firm’s assets / name / business connections

Case: Pathirana v Pathirana (1967) &
Bentley v Craven (1853)

Question 4

Fiduciary duties of a partner

Not to compete S.30

Answer 4

Profit made by competing business has to be handed over to the firm (unless he has permission from fellow partners)

Case: Glassington v Thwaites (1823)