Joe is a taxi driver. He reaches an agreement with Ann, who owns a taxi, on these terms:-
- At times to be agreed, Joe can pick up the taxi from Ann, who will deliver it with a tank full of fuel, in a clean condition and in proper repair.
- Joe can then drive the taxi for profit-making purposes for a maximum 12-hour shift, charging standard taxi rates, and using the radio system which Ann pays for at her own expense.
- During the shift, Joe will be entitled to buy petrol for the taxi out of the takings from the taxi fares.
- Joe must return the taxi to Ann no later than the 12-hour limit, in a clean condition and with the fuel tank full.
- The balance of Joe's takings (after fuel costs) will be shared between Joe and Ann 50/50.
- Ann will be responsible to pay for all other expenses of running the taxi, including taxi licence renewals, repairs and maintenance, insurances, etc.
Question 1:
Provide a legal argument for why this is NOT a partnership under the Partnership Act 1891 (Qld).
Question 2:
Apply the "three certainties" to demonstrate why this agreement does NOT create a trust.
Presentation:
A mark between 0 and 5 is available for the professional qualities of your work. It includes things like: structure and formatting with consistent headings, fonts and page numbering; spell-checking; logical flow of explanations; conciseness and relevance; general readability. Your answers must be expressed in your own words. You will not receive marks for copying slabs of text with no attempt to summarise.