Introduction

The statement "Sharing of profit is conclusive evidence of partnership" is a widely accepted principle in partnership law. However, whether this statement is correct or incorrect depends on certain factors and circumstances.

Explanation

Here are some points to consider in determining the correctness of the statement:

1. Legal Definition of Partnership

A partnership is a type of business entity where two or more persons carry on business together with a view to profit. The legal definition of partnership varies from country to country, and it is essential to understand the specific definition in a particular jurisdiction.

2. Elements of Partnership

To form a partnership, there must be an agreement between the partners to carry on business together, share profits and losses, and contribute to the business's capital. Sharing of profits is one of the essential elements of partnership, but it is not conclusive evidence of partnership.

3. Other Factors to Consider

Apart from sharing profits, other factors may indicate the existence of a partnership. These factors include the sharing of losses, joint ownership of property, mutual agency, and joint control over the business. The presence of these factors, in addition to sharing of profits, can provide conclusive evidence of partnership.

4. Presumption of Partnership

In some jurisdictions, there is a legal presumption that when two or more persons share profits, they are deemed to be partners. However, this presumption can be rebutted if there is evidence to the contrary.

Conclusion

In conclusion, while sharing of profits is an essential element of partnership, it is not conclusive evidence of partnership. Other factors must be considered, and the legal definition of partnership in a particular jurisdiction must be analyzed to determine the existence of a partnership.

Sharing of profits is not conclusive evidence of partnership. So given statement is false

If there is some business activity carried on by all or any one acting for all(MUTUAL AGENCY) then it is conclusive evidence of partnership

So given statement is false