MARVIN MANDEL, Governor                                  1919

SUBTITLE 2. NATURE OF A PARTNERSHIP.

9-201. RULES FOR DETERMINING THE EXISTENCE OF A
PARTNERSHIP.

IN DETERMINING WHETHER A PARTNERSHIP EXISTS, THESE
RULES SHALL APPLY:

(1)    EXCEPT AS PROVIDED BY §9-308, PERSONS WHO ARE
NOT PARTNERS AS TO EACH OTHER ARE NOT PARTNERS 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 THE CO-OWNERS DO OR DO NOT SHARE ANY PROFITS MADE
BY THE USE OF THE PROPERTY.

(3)   THE SHARING OF GROSS RETURNS DOES NOT OF ITSELF
ESTABLISH A PARTNERSHIP, WHETHER OR NOT THE PERSONS
SHARING THEM HAVE A JOINT OR COMMON RIGHT 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 IS PRIMA FACIE EVIDENCE THAT HE IS
A PARTNER IN THE BUSINESS, BUT NO SUCH INFERENCE SHALL BE
DRAWN IF THE PROFITS WERE RECEIVED IN PAYMENT:

(I)   AS A DEBT BY INSTALLMENTS OR OTHERWISE;

(II)    AS WAGES OF AN EMPLOYEE OR RENT TO A
LANDLORD;

(III)    AS AN ANNUITY TO A SURVIVING SPOUSE OR
REPRESENTATIVE OF A DECEASED PARTNER;

(IV)   AS INTEREST ON A LOAN, THOUGH THE AMOUNT OF
PAYMENT VARIES WITH THE PROFITS OF THE BUSINESS; OR

(V)    AS THE CONSIDERATION FOR THE SALE OF THE GOOD
WILL OF A BUSINESS OR OTHER PROPERTY BY INSTALLMENTS OR
OTHERWISE.

REVISOR'S NOTE: This section presently appears as
Art. 73A, §7. A cross—reference is conformed.

In paragraph (4) (iii) , the term "surviving
spouse" is substituted for "widow."

The word "or" is added at the end of paragraph
(4)(iv).

In two instances, the word "the" is
substituted for the word "such."