Redfern Farm Services Ltd. v. Wright Michael and Kyle Wright and their father Wi

Question

Redfern Farm Services Ltd. v. Wright Michael and Kyle Wright and their father Willim Wright all carried on business as farmers in Manitoba. Each had separate farm property registered in their own name but they carried on the business of farming indiscriminately as to who owned what. They fed and pastured the animals together and carried on other aspects of their business together. The three operations were all quite intertwined. They did carry on the crop production aspects of their businesses separately, but that was only a small unprofitable part of the overall operation They also maintained separate herds of cattle and kept the profit for themselves when they were sold. Note that although the herds were separately identifiable they were fed, corralled and nurtured as one common herd. In response to questioning by a representative of Redfern Farm Services with respect to the grain operation the father said "I order the seed, I order the fertilizer, I order the spray, I order the day custom applicator, I talk to Darryl, I'm the one that does the crop rotations, I use everybody's fields as my own. I'm the one that pays the bills." The father bought the supplies used by all and owed $55,365.82 to Redfern which was not paid. Redfern sued all three. Are Michael, Kyle and William partners? What factors do the courts consider in determining whether a partnership exists? What are the consequences of a finding that there is a partnership relationship? Please answer these questions in case format. tt gatu i s Rvk 5

Explanation / Answer

Are they are partners?- no, they should not be considered as partners and the business which they carries do not considered as under the name of partnership. It can be considered as Joint Family business, where the family head carries all the activities with his own name and the rest of the people support to the busienss. It is the same in the given case, that is the reason why the father said to Redfern that he is sole to all the activities. Nothing wrong with the satement, as a father and head of the family he is considering as head of the business too. It should be considered as Joint Family business under the laws.

the factors considered by partnership: If they really partners to the business, first there must be a partnership deed, which disclose the contributions of each partners, rights and obligations of each partners and other terms and conditions of the partnership deed. But in this case, there is no partnership deed, there is no clarity about the capital contribution of all the parties and it will be difficult to draw the liability or obligation of each party to the court of law.

Hence, it is not considered as partnership and it must be considered as joint family business operations.

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