Partnerships

Question 1

Khan v Miah [2000] 1 WLR 2123

Answer 1

 What point is partnership created?
 Individuals agree to form a prtnership to run a resteraunt
 Khan finances this arangment.
 Start furnishing the resteraunt, after they lease premisise
 Relation breaks down between the parties before they open
 Resteraunt eventually opens, khan is not involved, not given share of the profit share.
 H.O.L. HELD, it is not the case that partnrship is created the moment they start trading, RATHER it is when they embark on the action (activity of running the resteraunt business).
 H.O.L. finds there is a partnership so khan is entitield to profit.
 P.S. „“Joint venture“ = type of partnership (short term)

Question 2

Sharpe v Carswell 1910 SC 391.

Answer 2

 People run fishing boat together
 Widow brought case against the owners of the boat, as her husband died upon the boat.
 Tried to argue that her husband was employed by Creswell so she could claim compensation.
 ** Owners of boat claim he wasn’t an employee, they argued he was a partner, due to him having shares in the boat.
 Held, mere ownership of shares did not make him a partner.

Question 3

Clark v Jamieson 1909 SC 132.

Answer 3

 People running a boat are given a share of the gross earnings
 Husband of the widow dies on the boat and she tried to argue he was an employee.
 HELD, even though her husband had been paid a percentage of gross earnings,that in itself did not make him a partner.
o Noted that he did not contribute to the running capital (cost of maintaining boat).
o Also noted that he was not liable if the boat made a loss.

Question 4

Mair v Wood 1948 SC 83.

Answer 4

 1 partner removes floor planks of the deck of the ship, other partner falls through floor planks onto the propeller.
 Question was whether the firm was liable for the negligent action of one partner injuring the other partner.
 Held that individual employee is liable, as you cannot use section 10 against your own partners.

Question 5

Blisset v Daniel (1853) 10 Hare 493

s.25 - Power to expel member

Answer 5

 Blisset gets notice saying he was expelled
 Blisset had had a disagreement with another partner Von, as Von had appointed his son as a manger even though he was not qualified.
 Partnership agreement states there was a power to expel and there was NO need to give reasons or to hold a meeting.
 HELD, even though there is a power to expel it was not in Good Faith.
 When expelling a partner it must be for the good of the company.