Explain how a group of people does or does not constitute a partnership?

A group of people may not form a partnership if they do not meet the legal requirements for partnership formation. In order to form a partnership, there must be a mutual agreement between the parties to carry on a business for profit, a contribution of capital or services by each partner, shared management and control of the business, and a shared responsibility for profits and losses.

If any of these elements are missing, the group of people would not be considered a partnership. Additionally, if the group of people does not have a written partnership agreement outlining the terms and conditions of their partnership, it may be difficult to establish a legal partnership.

Furthermore, if the group of people does not have a common business goal or if there is a lack of trust and communication among the members, they may not be able to effectively work together as partners. In these cases, the group of people may not be able to form a successful partnership.

Situations where a Group of People Do Not Form a Construction Partnership:

1. Lack of Agreement:
- There is no express or implied agreement among the individuals to create a partnership.
- Each person acts independently, without mutual assent.

2. Absence of Partnership Intent:
- The individuals do not manifest an intent to form a partnership.
- They may be working together on a temporary or casual basis.

3. Separate Business Interests:
- The individuals have separate businesses and are not carrying on a common enterprise.
- They may be working on a project in a contractor-subcontractor relationship.

4. Independent Contractors:
- The individuals are hired as employees or independent contractors, and do not share in the ownership or management of the project.
- They are not liable for each other's debts.

5. Joint Venture (Limited Liability Entity):
- The individuals form a joint venture, which is a separate legal entity with limited liability.
- They may share profits and losses, but do not have a personal obligation for the venture's debts.

6. Lack of Authority to Bind Others:
- One or more individuals may not have the authority to enter into contracts or make decisions on behalf of the group.
- Their actions do not bind all members of the group.

7. Co-Ownership of Property:
- The individuals may jointly own equipment or materials, but this does not in itself create a partnership.
- They may be holding the property as tenants in common.

8. Absence of Shared Profits and Losses:
- The individuals do not share in the profits and losses of any business venture.
- They may be working together on a non-profit basis.

9. Sharing of Expenses:
- The individuals may share expenses, such as office space or equipment, but this alone does not create a partnership.
- They may simply be pooling their resources to save costs.