4. Essentials of partnership.

Partnership involves a contract between the partners to engage in a business with a view to profit1. For the purpose of determining whether a partnership has commenced, persons who have agreed to carry on a business as a joint venture are not partners until they embark on the activity in question2.

Each partner may contribute either property, skill or labour. A person who contributes property without labour, and has the rights of a partner, is usually termed a 'sleeping' or 'dormant partner', but a sleeping partner may, however, contribute nothing at all