Partnership Law: Case Study

1932 WordsJan 15, 20138 Pages
Part a) Legal position enabling expulsion of Annabel from the partnership. Step 1:- The problem at hand deals with Partnership law as governed by the Partnership Act 1895 in the absence of a written agreement. Principles of Common law and Equitable principles also apply. Partnership Act governs the partnership of ‘Health Plus’. Sec. 30 of the Act, as it relates to misappropriation of partnership property. The application of Sec. 39 Partnership Act 1895 and the Fiduciary Duty breached. Supreme Courts position to dissolve the Partnership due to absence of an agreement. Step 2:- The partnership of Health Plus is a verbal agreement. Hence it is governed by the Partnership Act 1895. Firstly it is evident that a Partnership exists as…show more content…
Having established that the pre-requisites for a binding contract were satisfied, is then Health Plus stopped from denying payment to Quick–Cure on the stated contract. Step 2:- Section 7 (1) of PA 1895 – defines a partnership as a contractual relationship between two or more parties, in the pursuance of a business with a view to profit. Smith v. Anderson – Is authority for the description of the term Pursuance or ‘Carrying-on’ of business. It implies a repetition or a continuation of acts or transactions, either in fact or in intention. The existence of a partnership can be deduced in terms of Common Law as follows: - Firstly, an Intention to so carry on business in partnership. Secondly, the existence of a relationship of agency amongst partners. In a partnership all parties are able to act as agents. Thirdly, the sharing of profits and losses is a clear indication of the existence of a partnership. In terms of statutory rules; a clear indication is deduced by the joint ownership of property, sharing of gross returns and a receipt of the profits. Duke Group v. Pilmer (1999) – is authority to state that it is in the manifestation of an agent-principal relationship, that business can occur as it relates to a partnership. Goudberg v. Herniman Associates Pty Ltd – States
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