§ 59-37. Rules for determining the existence of a partnership. - North Carolina Statutes

§59‑37.  Rules for determining the existence of a partnership.

In determining whether apartnership exists, these rules shall apply:

(1)        Except as providedby G.S. 59‑46 persons who are not partners as to each other are notpartners 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‑ownersdo or do not share any profits made by the use of the property.

(3)        The sharing of grossreturns does not of itself establish a partnership, whether or not the personssharing them have a joint or common right or interest in any property fromwhich the returns are derived.

(4)        The receipt by aperson of a share of the profits of a business is prima facie evidence that heis a partner in the business, but no such inference shall be drawn if suchprofits were received in payment:

a.         As a debt byinstallments or otherwise,

b.         As wages of anemployee or rent to a landlord,

c.         As an annuity to awidow or representative of a deceased partner,

d.         As interest on aloan, though the amount of payment vary with the profits of the business,

e.         As the considerationfor the sale of a goodwill of a business or other property by installments or otherwise.(1941, c. 374, s. 7.)