Formation

Question 1

Need a written agreement?

Answer 1

No

Question 2

Absent an express agreement, the existence of a partnership is based on evidence of which three things?

Answer 2

Intent to enter into a business as co-owners for profit

Agreement to share profits and losses

Mutual right of control of the business

Question 3

Is a verbal partnership agreement a k?

Answer 3

Yes

Question 4

Which set of laws apply to partnership agreements?

Answer 4

Contract law

Question 5

What is prima facie evidence that someone is a partner?

Answer 5

Receipt of a share of business profits and losses

Question 6

Share of profit received for which 4 things will not provided prima facie evidence of being in a partnership?

Answer 6

Wages

Rent

Consideration for the sale of an asset

Repayment of principal or interest on a debt

Question 7

E and S agree to bring M into their RE partnership. They agree that M will be entitled to a 20% share of the profits. Is M a partner? Why

Answer 7

Yes. Prima facie evidence: she is receiving a share of profits.

Question 8

E and S agree to bring M in to run the business office and manage their RE partnership business accounts in exchange for a 20% share of the profits. Is M a partner? Why?

Answer 8

Maybe.

Their is prima facie evidence (receipt of profit share) but the 20% could be construed as compensation (not prima facie evidence)