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Rules for Partnership - Partnership Law
(i) Whether the receipt through a person of a debt or other liquidated amount through instalments, or otherwise but out of the accruing profits of a business does not of itself make him then a partner in the business or liable as such. So further this is a creditor.
(ii) Whether a contract for the renumeration of a servant or agent of a person occupied in a business thorugh a share of the profits of the business does not about itself make the servant or agent a partner in such business or liable as such. Since the person is an employee there.
(iii) Whether a person, being the widow or may child of a deceased partner and receiving through way of annuity a portion of the profits made in such business whereas the deceased person was a partner there is not through reason only of such receipt a partner in such business or liable as such.
(iv) Whether the advance of money through way of a loan for a person engaged or about for engage in any business, so or a contract with that person such the lender shall receive a rate of interest varying regards the profits arising from carrying at the business, does not about itself make the lender a partner with the person or persons carrying out such the business or liable as such. Further provided that the contract is in writing, and signed through or on behalf of all the parties to it. Hence this is so because he is a creditor.(v) Whether a person receiving by way of annuity or otherwise a portion about the profits of a business, in such consideration of the sale through him of the goodwill of the business, is not through reason only of such receipt a partner in such the business or liable as such. Moreover this is so since is a seller of goodwill.
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