https://www.taxtmi.com/caselaws?id=174088 An agreement may create a partnership in law even where one party receives a fixed monthly sum instead of a conventional share of profits, if the parties expressly intend to carry on business as partners and practise under a firm name. The Court treated the fixed payment as a permissible commercial variation of profit-sharing, and the absence of a conventional loss-sharing clause as non-decisive. It relied on the parties' wording and surrounding conduct, including their treatment of themselves as partners and the notice of dissolution, to give effect to their real intention. The agreement was therefore construed as a partnership. en-us Wed, 11 Aug 1926 00:00:00 +0530 Tue, 29 Sep 2015 17:31:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174088 An agreement may create a partnership in law even where one party receives a fixed monthly sum instead of a conventional share of profits, if the parties expressly intend to carry on business as partners and practise under a firm name. The Court treated the fixed payment as a permissible commercial variation of profit-sharing, and the absence of a conventional loss-sharing clause as non-decisive. It relied on the parties' wording and surrounding conduct, including their treatment of themselves as partners and the notice of dissolution, to give effect to their real intention. The agreement was therefore construed as a partnership. Case-Laws Indian Laws Wed, 11 Aug 1926 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174088