Discussion
A right to participate in profits, although strong but not a conclusive test of partnership was laid down in :
Answer: D
The rule was laid down in Cox v Hickman.
In Cox v Hickman (1860), the House of Lords held that creditors who took a share of the profits of a business run for their benefit were not partners. Sharing of profits is strong evidence of partnership, but not a conclusive test; the real question is whether the business is carried on by or on behalf of the persons sought to be charged, the idea of mutual agency later written into partnership law.
The other cases are not the source of this rule; Cox v Hickman is the one that displaced the earlier view that sharing profits automatically made one a partner.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development