(a) That's right. A partnership is created when two or more persons have begun to operate a business together (jointly, in common) with a view to making profits. Parties who wish to create a partnership can agree to do so at some time in the future, but no partnership is actually created until business activities commence.
Although formalities are not necessary to create a general partnership, the persons who intend to form a partnership may discuss and agree on the details of their relationship, and record these terms in a 'partnership agreement' or 'deed of partnership'. Such an agreement may, to an extent, modify the legal rules that would otherwise apply.
Australian law has come to distinguish between ordinary partnerships, which are known as 'general partnerships' and, more recently, special types of partnership called 'limited partnerships' and 'incorporated limited partnerships'. These different kinds of partnership each have their own important special characteristics, so careful attention must be paid to what kind of partnership is being created or discussed.
In the following sections, the law of general partnerships is first explained. The nature of limited partnerships is explained in a separate section.