The question (15 marks)
'Sharing of profits is evidence of partnership but is not the test of it.' Discuss this statement with reference to sections 4, 5 and 6 of the Indian Partnership Act 1932 and the decided cases. (15 marks)
MU Module I, definition of partnership and its essentials; chapter on the nature of partnership and the test of agency, and case briefs 01 to 03.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 1 · The Indian Partnership Act, 1932 of Contract – II.
Authorities you will need
- Cox v. Hickman (1860) 8 H.L.C. 268
- Mollwo, March & Co. v. The Court of Wards (1872) L.R. 4 P.C. 419
- K.D. Kamath & Co. v. CIT (1971) 2 SCC 873
- Miles v. Clarke (1953) 1 All ER 779, on partnership property once the relation is established
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.