Monday, October 08, 2007

Parternship Act_Practical Problems_1

A and B, co-owners of a house, let it to a paying guest. They divide the net rents between them. Are they partners?

No-A and B, are not partners since a very essential element that the partners must be engaged in carrying some business is lacking. They could be partners if they make it their business to acquire houses jointly to rent out and share the net gains. Since it is the only house, they are the co-owners only—not partners.

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