362.180 Rules for determining the existence of a partnership.

224 words·~1 min read·/ky/chapter-362/362-180

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

In determining whether a partnership exists, these rules shall apply:

(1)Except as provided by KRS 362.225 persons who are not partners as to each other

are not partners as to third persons.

(2)Joint tenancy, tenancy in common, tenancy by the entireties, joint property,

common property, or part ownership does not of itself establish a partnership,

whether such co-owners do or do not share any profits made by the use of the

property.

(3)The sharing of gross returns does not of itself establish a partnership, whether or not

the persons sharing them have a joint or common right or interest in any property

from which the returns are derived.

(4)The receipt by a person of a share of the profits of a business is prima facie

evidence that he is a partner in the business, but no such inference shall be drawn if

such profits were received in payment:

(a)As a debt by installments or otherwise,

(b)As wages of an employee or rent to a landlord,

(c)As an annuity to a widow, or widower or representative of a deceased partner,

(d)As interest on a loan, though the amount of payment vary with the profits of

the business,

(e)As the consideration for the sale of a goodwill of a business or other property

by installments or otherwise.