Reviewed case brief

Cox v Hickman

(1860) 8 HLC 268

Creditors of a business agreed to a deed assigning the business to trustees who would carry it on and distribute profits among the creditors until debts were paid. The House of Lords held that the creditors were not partners merely because they shared profits. The true test of partnership is mutual

partnershipprofit-sharingmutual-agencydistinction-from-company
Court
House of Lords
Year
1860
Subjects
Company Law
Reviewed
2026-06-30

Rule established

Sharing of profits is not conclusive evidence of partnership; the true test is whether there is mutual agency between the parties

Facts

    Issues

      Held

        Ratio decidendi

        How to use it in an exam

        Editorial source

        House of Lords

        Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.