Victorian Current Acts

PARTNERSHIP ACT 1958 - SECT 6

In determining whether a partnership does or does not exist regard shall be had to the following rules—

    (1)     Joint tenancy tenancy in common joint property common property or part ownership does not of itself create a partnership as to anything so held or owned whether the tenants or owners do or do not share any profits made by the use thereof.

    (2)     The sharing of gross returns does not of itself create a partnership whether the persons sharing such returns have or have not a joint or common right or interest in any property from which or from the use of which the returns are derived.

S. 6(3) amended by No. 46/1987 s. 6.

    (3)     The receipt by a person of a share of the profits of a business is prima facie evidence that that person is a partner in the business, but the receipt of such a share or of a payment contingent on or varying with the profits of a business does not of itself make that person a partner in the business and in particular—

S. 6(3)(a) amended by No. 46/1987 s. 6.

        (a)     the receipt by a person of a debt or other liquidated amount by instalments or otherwise out of the accruing profits of a business does not of itself make that person a partner in the business or liable as such;

        (b)     a contract for the remuneration of a servant or agent of a person engaged in a business by a share of the profits of the business does not of itself make the servant or agent a partner in the business or liable as such;

S. 6(3)(c) amended by Nos 46/1987 s. 6, 27/2001 s. 8(Sch. 6 item 4.3).

        (c)     a person being the spouse, domestic partner or child of a deceased partner and receiving by way of annuity a portion of the profits made in the business in which the deceased person was a partner is not by reason only of such receipt a partner in the business or liable as such;

        (d)     the advance of money by way of loan to a person engaged or about to engage in any business on a contract with that person that the lender shall receive a rate of interest varying with the profits or shall receive a share of the profits arising from carrying on the business does not of itself make the lender a partner with the person or persons carrying on the business or liable as such: Provided that the contract is in writing and signed by or on behalf of all the parties thereto;

S. 6(3)(e) amended by No. 46/1987 s. 6.

        (e)     a person receiving by way of annuity or otherwise a portion of the profits of a business in consideration of the sale by that person of the goodwill of the business is not by reason only of such receipt a partner in the business or liable as such.

No. 3745 s. 7.

S. 7 amended by No. 7315 s. 3 (Sch. 1 Pt B).