5/8/2011 Partnership property:Miles v Clarke Def ran fashion photography business: obtained lease and hired employees. Pl(professional photographer)was recruited as a partner. When partnership was to be dissolved, what was partnership property? No express agreement. Property: -Stock in trade (eg film) -Lease -Equipment,furniture etc -Goodwill in studio name Goodwill brought by pl ·Held: -Only stock in trade was partnership property -to give business efficacy to the arrangement. Relationship between partners ·Contract -see also POs 26 Fiduciary relationship arises due to relationship of trust and confidence. Fiduciary duties imposed in equity. ·Also reflected in PO: -s 31(1):Account to firm for benefits obtained concerning or using property of the firm -s 32:Competing partner must pay all profits over to firm 65/8/2011 5 9 Partnership property: Miles v Clarke • Def ran fashion photography business: obtained lease and hired employees. • PI (professional photographer) was recruited as a partner. • When partnership was to be dissolved, what was partnership property? • No express agreement. • Property: - Stock in trade (eg film) - Lease - Equipment, furniture etc - Goodwill in studio name - Goodwill brought by pl • Held: - Only stock in trade was partnership property - to give business efficacy to the arrangement. 10 Relationship between partners • Contract - see also PO s 26 • Fiduciary relationship arises due to relationship of trust and confidence. • Fiduciary duties imposed in equity. • Also reflected in PO: - s 31 (1): Account to firm for benefits obtained concerning or using property of the firm - s 32: Competing partner must pay all profits over to firm