Question

What is the basis for determining whether a person is partner in a firm?

• A. The real relation between the parties, as shown by all relevant facts taken together
• B. The sharing of profits arising from the property by persons holding common interest in such property
• C. The sharing of profits arising from the property by persons holding joint interest in such property
• D. The receipt by a person of a share of the profits of a business

Answer 1

The Correct Option is A

The existence of a partnership is determined by the actual relationship between the parties, not merely by their share in the profits. All relevant facts are considered.