3. Existence

Question 1

Who may become a partner

Answer 1

1. Any natural person who is capacitated to become a partner
2. Artificial persons such partnership and corporation

Question 2

Rules to determine there’s no existence of partnership

Answer 2

1. Terms of contract is unclear
2. Existence of the partnership is questioned by the affected party.

Question 3

If someone acts like a partner in a business and leads others to believe they are a partner, they can be treated as one legally, even if they weren’t formally designated as such.

Answer 3

partnership by estoppel

Question 4

refers to evidence or facts that, on first impression, appear to be sufficient to prove a particular claim or establish a certain conclusion.

Answer 4

Prima facie

Question 5

Rules applied in determining whether a partnership exists

Answer 5

Persons whose not partners to each other is not partners to third persons except partnership by estoppel
2. Co-ownership or co-possession doesn’t established a partnership
3. Not merely sharing profits but as a co-owner of the business makes one a partner (after satisfying a liability, partners shares profit)
4. Receipt by a person of a share of profit is a prima facie evidence that he is a partner.

Question 6

Exceptions whether the receipt of share of profits doesn’t mean he’s a partner

Answer 6

1. Payment for debt by installment
2. Wages of an employee or payment to rent
3. Annuity to a representative or widow of a deceased partner
4. As an interest loan
5. Consideration for the sale of goodwill

Question 7

Consideration for the sale of goodwill example

Answer 7

A sell her pen to partnership B, she said that the payment would be the 10% of the profit. If there’s no profit she doesn’t received anything nor be liable to any losses