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 suspect; Paine, to try and establish whether or not there is a legally binding league between the 2 parties. The federation 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 occupation as a partnership in 1992 and are assuage involved in a continuing partnership for the usance of running a eatery known as Milano unification Café Restaurant at The Junction, Newcastle and a restaurant known as Milanos on the Lake at Pelican on Lake Macquarie and enacts that the affairs of the partnership be wound up, that a receiver be appointed and that an report be taken.

Paine, in response; states that they were the sole proprietor of the coupling restaurant, with only the operating rights being given to the plaintiff as logical with the sublease; that she opened an ANZ bank account in her flesh shortly before the Junction restaurant opened and deposited in it $100,000 to be used for the fit-out of the restaurant. The defendant says that she lent $100,000 to the plaintiff and that he acknowledged his obligation to repay.

The court came to the conclusion that a partnership did not exist, arising from a certain number of facts:

§         The lessee of the premises was the defendant. The sum of $100,000 needed to set up the restaurant was provided by the defendant.

§         Income and expenditure relating to the Junction restaurant were included in income tax returns of the defendant in certain years.

§         The plaintiff himself represented the Junction restaurant business to have been owned solely by the defendant until about 1997,

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