A software company contracted with a training company in order to cooperate in teaching courses. When the relationship ran aground, the software company claimed that the parties had formed a partnership and therefore it was entitled to half of the profits from the courses, while the training company claimed that it was entitled, at best, to wages for the work done as a supplier.
The Court held that there is no need for a partnership agreement to create a partnership. A partnership is two or more persons who conduct a business together for profit and whose relationship is not regulated as a different type of corporation. In order to determine whether a partnership has been established, various criteria will be examined, such as the parties' intention to be partners, presenting them to the public as partners, the parties' participation in profits and losses, the duration of business relations between the parties, participation in the use and holding of the partnership assets etc. This is not a closed list, and each case is on its merits. It was further noted that in the absence of a written document, a partnership shouldn't be discounted, since it can also be proven by the parties' conduct.