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PARTNERSHIP - Coggle Diagram

- - - - SECTION 4(a) Joint Tenancy and tenancy in common
        
        ownership of property by two or more person ~partnership does not exist just because any property that held or owned jointly and out of the property there is profit ~Regardless profit is divided amongst co owner -#DAVIS v DAVIS
      - SECTION 4(b) Sharing of gross return
        
        -Just because a person receives gross return, it does not make him a partner. ~only shares of net profit (the income earned after deducted all expenses -#COX v COULSON -> H: Sharing of gross return does not create partnership. Hence, partneship=intention to share in the net profits of busniess.
      - SECTION 4(c) Receipt of share of profit
        
        General Rule: If a person receives a shares of profits- he is prima facie to be a partner. But, it may be rebutted by showing other purposes of sharing profit - SECTION 4(c) shows instance whereby sharing of profit does not make the person receives a partner.
        
        SECTION 4(c)(i) Repayment of loan out of profit -- If a person lend money to partnership and and receives payment of debt over installment out of profits of business, it does not makes him a partner. #BADALEY v CONSOLIDATED BANK
        
        SECTION 4(c)(ii) Payment of remuneration to servant/agent out of profit -- Under this rule, servant/agent may take part in firm's project, where they have shares but not liable as partners. #WALKER v HIRSCH -> Plaintiff was merely a servant and not partner even though he had received payment from profit
        
        SECTION 4(c)(iii) Payment of Annuity to the widow or children of a deceased partner out of profit -- Partners may provide in partnership agreement that their widows or children are to receive annuity after their death. They are not partners. -#IRC v LEBUS'S TRUSTEE
        
        SECTION 4(c)(iv) Repayment of interest on a loan out of profit --Where a person loaned some money to a firm, and enters into contract agreeing that the rate of interest will vary according to the business profit, all of these does not make him a partner -#RE YOUNG ex p JONES
        
        SECTION 4(c)(v) Sale of goodwill --When there is an agreement for the sale of business and its goodwill,and the payment for the sale of business will be made out of profits that the business may make-the recipient of such payment is not a partner. -#PROTT v STRICK