If you claim to be a business partner, you must prove that the partnership exists. Simply saying “I am a partner” is not enough. That statement alone does not put the responsibility on the business owner to disprove your claim.
Does a partnership need a written agreement?
Under the Partnership Act, 2012, a partnership is the relationship between persons carrying on business in common with a view to making profit. In everyday terms, the question is whether the people are running a business together to make a profit.
A partnership can exist without a written agreement. It can also be proved by conduct: what the people actually did in relation to the business, rather than only what they called their arrangement.
So, the absence of a signed agreement does not by itself settle the question. Equally, calling someone your partner does not remove the need for evidence if the relationship is disputed.
What evidence can support the claim?
Typical proof includes a partnership deed, bank records of capital contributed, receipts, shared accounts, or evidence of sharing profits and losses. A partnership deed is a written agreement recording the partnership.
For example, someone claiming to be a partner in a neighbourhood shop might point to bank records showing money they contributed to the business. They might also have records showing how profits and losses were shared. Those records give the court something to assess beyond the person’s own statement.
No single example here guarantees that a partnership will be proved. Where the relationship is disputed, the court or tribunal weighs the evidence placed before it.
Keep records, not just an understanding
Under sections 107 to 109 of the Evidence Act, whoever wants a court to find that a fact exists must prove it. This responsibility is called the burden of proof.
If you regard yourself as a business partner, keep copies of records supporting that understanding. Ask for the arrangement to be put in writing, and preserve existing records of how the business has been run. If a disagreement arises, speak to an advocate about the evidence you have, rather than relying only on the words “we are partners”.
📚 Patel aka Muna t/a Elegant Comm Post Global Telephone Bureau also as Maungano Corner Shop v Sunga [2026] KEELRC 14857 (KLR)
Entertainment and general information, not legal advice. For advice on your own situation, speak to an advocate.