What is the test for forming a partnership?
British Columbia, Canada
The following excerpt is from Linnebank v. 0786763 B.C. Ltd., 2016 BCSC 2220 (CanLII):
“Business” is broadly defined in s. 1 of the Partnership Act as including “every trade, occupation or profession”. A partnership may be formed where two parties agree to carry on the existing business of one of them. While the partners need not carry on the business for a long period of time, they must in fact carry it on. It is not enough to simply agree to carry on a business: Backman v. Canada, 2001 SCC 10 at para 20; Jacobs v. Yehia, 2014 BCSC 845 at para. 212-213, reversed in part on other grounds 2016 BCCA 38.
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