In which one of the following situations will a court find that a partnership exists?
A) Joe and Mary promote several dances at school and split the profits.
B) Joe and Mary, while in college, purchase a house and share the profits from the rent after deducting expenses.
C) Joe, a partner in a law firm, dies and Joe's widow takes over Joe's share of the profits.
D) Joe is a partner in a shoe store and sells his share of the business to Harry without the consent of his partner.
E) Joe sells his business to Harry for $10,000 for the assets and a further $20,000 for good will, the good will portion to be paid at a rate of 20% of the profits from the business until paid.

Question

Quizplus · Accepted Answer

A partnership is typically formed when two or more people agree to share profits and losses from a business venture. In option A, Joe and Mary are promoting dances and splitting the profits, indicating a partnership.

In Which One of the Following Situations Will a Court