Q: What was the judgement of house of lords in Cox V. Hickman, 1860 ?

Ans: The House of Lords held that no man is a partner unless he has the right to share in the profits of a business, but every person who received the profit is not necessarily a partner. The sharing of profits is just a prima facie test of partnership. The conclusive test is that of mutual agency. Section 6 of the Act clearly lays down that the receipt by a person of a share of the profits of a business or payment contingent upon the earning of profits or varying with the profits earned in a business does not itself make him a partner with the person carrying on the business.

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