Angie, Chloe, and Michele carry on business in partnership as landscape gardeners. Angie purchased a set of patio furniture on credit for her personal use from a firm where the partnership purchased most of its equipment. Angie failed to pay for the goods, and the equipment supplier charged the purchase of the furniture to the partnership, as the goods had been delivered to the partnership's place of business. The sharing of business profits is insufficient to indicate the existence of a partnership agreement.

Question

Quizplus · Accepted Answer

A partnership agreement can be inferred from the conduct of the parties, even if there is no formal written agreement. In this case, Angie's purchase of the patio furniture on credit for her personal use and the delivery of the goods to the partnership's place of business indicate that the parties intended to create a partnership.

Angie, Chloe, and Michele Carry on Business in Partnership as Landscape