Western Australian Current Acts Western Australian Current Acts (1A) In determining
whether a partnership does or does not exist regard shall be had to the rules
set out in subsections (1) to (8).
(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.
(3) 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 the receipt of such a share, or of a payment
contingent upon or varying with the profits of a business, does not of itself
make him a partner in the business.
(4) 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 him a partner in
the business or liable as such.
(5) A contract for the
remuneration of a servant or agent of any 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, or give him the rights of
a partner.
(6) A person who,
immediately before the death of a deceased partner, was the spouse or de facto
partner of the partner, or who is the 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.
(7) 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 at the time of the advance entered into in
writing and signed by or on behalf of all the parties thereto.
(8) A person receiving
by way of annuity or otherwise a portion of the profits of a business in
consideration of the sale by him of the goodwill of the business is not, by
reason only of such receipt, a partner in the business, or liable as such.
[Section 8 amended: No. 28 of 2003 s. 154; No. 19
of 2010 s. 51.]