Question

What are the three essential elements necessary (but not necessarily sufficient) to form a partnership? How can they be made sufficient?

Answer 1

A partnership involves an agreement between two or more people to carry out a business for profit. The agreement can be either expressed or implied and need not be in writing. The three essential elements are the joint ownership of two or more persons in the business, sharing of profits or losses, and joint right to control the business. But these three elements are not sufficient to form a partnership if the partners do not intent to associate and make profit. These elements can be made sufficient only by creating the intent to make profit by managing the business.