Jessica had operated a business for several years.Because the number of customers increased significantly, she persuaded Zach to work together with her.Two years after Zach came aboard, Jessica committed a tort while acting in the course of the business and caused a customer to suffer a substantial loss.A question has arisen as to whether Zach and Jessica were partners.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The existence of a partnership does not depend solely on whether the parties have signed a partnership agreement or have used the word "partnership" to describe their relationship. The courts will examine the parties' intentions and the nature of their conduct to determine whether a partnership exists. Thus, even if Zach and Jessica signed a document that said they were not partners, they could still be found to have formed a partnership if they acted like partners (e.g., shared profits and losses, held themselves out as partners to others, etc.).

Jessica Had Operated a Business for Several Years