358.070. Rules for determining the existence of a partnership. - Missouri Statutes

Rules for determining the existence of a partnership.

358.070. In determining whether a partnership exists, these rules shallapply:

(1) Except as provided by section 358.160 persons who are not partnersas to each other are not partners as to third persons;

(2) Joint tenancy, tenancy in common, tenancy by the entireties, jointproperty, common property, or part ownership does not of itself establish apartnership, whether such co-owners do or do not share any profits made by theuse of the property;

(3) The sharing of gross returns does not of itself establish apartnership, whether or not the persons sharing them have a joint or commonright 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 isprima facie evidence that he is a partner in the business, but no suchinference 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 representative of a deceased partner;

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

(e) As the consideration for the sale of a goodwill of a business orother property by installments or otherwise.

(L. 1949 p. 506 § 7)

CROSS REFERENCE:

Evidence of partnership, what constitutes, RSMo 490.520