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(b) That's wrong. In Australian law, a partnership is defined as a particular kind of relationship. It is a relationship which comes into existence when (and only when) two or more persons are carrying on a business together (in common) with a view to making a profit.

The critical phrases in this definition are: 'carrying on a business'; 'in common'; and 'with a view to making a profit'. Click on each of the phrases below for more detail.

In the present case, it appears that Edward and Ronnie have already done enough to create a partnership. They have agreed to carry out a business in common with a view to profits and, by leasing the premises, they have actually begun to carry on the business.

 Canny Gabriel Castle Jackson Advertising Pty Ltd v Volume Sales (Finance) Pty Ltd (1974) 131 CLR 321.