BLAW 101 Lecture Notes - Lecture 23: Santa Barbara City College, Fiduciary
Document Summary
The partnership act provides that in determining whether or not a partnership exists regard shall be had to the following rules. S6(1)- common or joint ownership of property (like land or buildings) does not necessarily mean that the common owners are in a partnership must be carrying on business in common. Sharing of gross returns does not mean the sharers are in a partnership. Farmer pays cribb for land use, not partners. Sharing of profits is not conclusive proof of partnership but creates a strong presumption (prima facie evidence) that there is a partnership; the other party has the onus of proving there is not a partnership. The act gives examples where the presumption does not operate: S 6(3)(a): a debt repaid in instalments out of profits. S 6(3)(b): a wage paid on the basis of a share of profits. General rights and duties under the partnership act: s 28. S 28(1) share equally in capital and profits and losses.
