1)Discuss whether a partnership exists?

  • Thread starter Thread starter Devayani D
  • Start date Start date
D

Devayani D

Guest
Mr K and Mr G agreed to the following arrangement:Mr.K would provide all the capital needed for the food catering business.Mr G would be the cook and oversee the business operation and receive a fixed salary and a percentage of the sales proceeds.Mr K would receive the balance after taking into account all other operating expenses.
 
I think they are into employer employee relationship as Mr. G is getting salary and also incentive.

So no question of partnership arises.
 
this is not partnership as in the partnership form of organisation the capital to be introduced by the partners is to be in a fixed proportion and the the partners are liable to the extent of capital introduced by them.
in this case the capital is introduced by just one person and this itself proves that this is not partnership..
 
Back
Top