2. Establishing a Partnership
This chapter deals with rules governing precisely how and when a partnership is or is not established and the circumstances in which the question might be raised. It considers the importance of establishing a partnership or partnership liability, which arises in three basic situations. First, when a person who has dealt with a business seeks to make another person liable as a partner in that business — sometimes this is called the ‘outsider question’. The second situation arises when one person seeks to enforce a duty or obligation on another — this can be called the ‘insider question.’ The third case is in the field of taxation and other public regulation areas, since it may be in the parties' interest to establish a partnership for such purposes (or, alternatively, for the authorities to establish one).