Where no partnership agreement exists, will a court dismiss a suit concerning the existence or terms of the partnership?
A) No, informal documentation, such as e-mails, notes, and memos may be used to identify the existence of a partnership and/or the terms of a partnership.
B) No, under federal law, oral testimony is sufficient to set forth the existence and terms of the partnership.
C) Yes, because of the statute of frauds.
D) Informal documentation is sufficient to set forth the existence of the partnership, but not sufficient to set forth the terms of the partnership.
E) Yes, the written agreement is necessary.

Question

Quizplus · Accepted Answer

Informal documentation, such as e-mails, notes, and memos, can indeed be used to establish the existence of a partnership and its terms, even in the absence of a formal partnership agreement. Courts often look at the conduct of the parties and any available documentation to determine if a partnership exists and what the terms might be.

Where No Partnership Agreement Exists, Will a Court Dismiss a Suit