Is it possible for a partnership to exist without a formal written agreement?

A partnership can indeed exist without a formal written agreement, which is why the chosen answer is correct. Partnerships can arise from the actions and conduct of the parties involved, rather than a requirement for a formal document. This concept is based on the principle that a partnership is formed when two or more individuals agree to conduct a business together with the intent to share in the profits and losses.

The law recognizes that partnerships can be formed through verbal agreements or even implied through the behavior of the individuals involved. For example, if two people regularly work together and share profits without any written document, a partnership may exist based on their interactions and intentions.

While having a written partnership agreement is advisable because it provides clarity on roles, responsibilities, profit-sharing, and other important aspects of the partnership, the absence of such a document does not prevent the formation of a partnership. Thus, partnerships can indeed be based on the conduct of the parties involved, showcasing the flexibility of partnership law in recognizing various forms of agreements.