Establishing whether a partnership exists according to the Partnership Act

In the case of Kang-Kem v Paine [2004] the plaintiff; Kang-Kem has taken action on the defendant; Paine, to try and establish whether or not there is a legally binding partnership between the two parties. The Partnership Act 1892 Section 1. Defines partnership as: "Partnership is the relation which exists between persons carrying on a business in common with a view of profit" Kang-Kem claims that they and the defendant; Paine commenced trading as a partnership in 1992 and …

…it clearly sets out the relationship amongst the partners. It is often difficult to determine whether a partnership does or does not exist. Whether or not the parties call themselves partners is not necessarily a vital factor. As can be seen in this case, where a partnership agreement has not been drawn up, disputes may arise to the actuality of a partnership existing, and may end in a distressing outcome for one or more parties.