How a partnership exists

How a partnership exists

Mary and Tom are best friends. They decide to run a flower shop together. They agree that Mary
will be responsible for leasing suitable premises to run the business from, while Tom will be
responsible for buying the equipment that they need to run the flower shop. Both parties are very
excited about the project. Tom finds pots that he likes and he believes those pots will be great for
the business. He orders one hundred of them from Jane. Jane then sends the invoice and the pots to
Mary, who takes delivery of the pots. However, before any other transaction takes place, Mary and
Tom have an argument and are no longer speaking to one another. Any plans for running the
business together have now been completely dropped. Jane has not been paid for the pots she
supplied.
Advise Jane as to whether a partnership exists between Mary and Tom. Why do you think Jane
wants to prove that there is a partnership between Mary and Tom? You must refer to the relevant
section(s) of the Partnership Act and also the appropriate cases to support your answer.

The School of Law and Justice uses the Australian Guide to Legal Citation (AGLC) for
referencing. It is recommended that you reference in accordance with the AGLC.

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