Walker v Hirsch (1884) 27 Ch D 460

Walker v Hirsch (1884) 27 Ch D 460

The plaintiff, a clerk in the defendant’s firm entered into an agreement that for the part taken by him in the business, he should receive a fixed salary and 1/8th share of the net profits and also losses. He, on his part, agreed to advance £1,500 to the business. The agreement could be determined on 4 months‟ notice on either side. The plaintiff continued to perform clerical duties and was never introduced to the customers as a member of firm. He did not have any voice in the conduct of the business. The defendants being dissatisfied with him gave him notice. The plaintiff claimed dissolution and accounts. His action was rejected, the court being of the opinion that on the true construction of the agreement the plaintiff remained in the position of a servant and never acquired the status of a partner. The case illustrates the fact that although an agreement for participation in profit and loss is a prima facie evidence of a partnership, yet the question of partnership must in all cases depend upon the intention of the parties as it appears on the contract.