Chan sold a business to Scott and in the process they valued the "good will" at $50 000.In the sale contract,it was agreed that this amount would be paid by Scott giving Chan 15 percent of the business profits until it was paid.This creates a partnership between them.

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The agreement to pay a percentage of profits does not necessarily create a partnership; it is simply a method of payment for the goodwill. A partnership requires an intention to carry on a business together with a view to profit.

Chan Sold a Business to Scott and in the Process