Ben had carried on the business of garment trading as a sole trader (‘the Business’) before he invited Collins to join the Business two years ago. Ben and Collins signed an agreement for the purpose of governing their relationship when Collins joined the Business.While the agreement was entitled the partnership agreement, it had all the characteristics of an employment contract. The agreement stated, among other things, that Collins had no right to share the profit and no power to control or manage the Business (‘the Agreement’).Collins has allowed himself to be described as a partner of the Business on his business card. Relying on Collins’s business card, which was given to David by Collins, David entered into a contract with the Business for selling garments to the Business on credit (‘the Price’) and is now suing the Business for payment of the Price.Required:In relation to partnership law, advise Collins as to:
(a) Whether the Agreement is in truth a partnership agreement; and (4 marks)
