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ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships

Amara and Bruno agree to run a bakery together and share the profits equally. They have signed no written agreement and have not registered anything with any authority. Under the general partnership law principles tested in LW (Global), what is the position?

A partnership can exist without writing or registration. It arises when two or more persons carry on a business in common with a view to profit. Amara and Bruno meet this test, so they are partners despite having no formal documents.

  1. AA partnership can exist because the parties carry on a business together with a view to profit, even without writing or registrationCorrect
  2. BNo partnership exists until a written deed is signed by both parties
  3. CNo partnership exists until it is registered with the company registrar
  4. DA partnership exists only if each party contributes equal capital

Explanation

A general partnership arises from the parties' conduct: carrying on a business in common with a view to profit. No writing or registration is needed, and capital contributions need not be equal. The distractors wrongly add formalities.

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