Guam § 25202 - Rules for Determining the Existence of a Partnership.

§ 25202. Rules for Determining the Existence of a Partnership.

In determining whether a partnership exists, these rules shall apply:

(1) Except as provided by § 25308, persons who are not partners as to

each other are not partners as to third persons.

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(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 such 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 such profits were received in payment:

(a) As a debt by installments or otherwise;

(b) As wages of an employee or rent to a landlord;

(c) As an annuity to a widow or representative of a deceased partner;

(d) As interest on a loan, though the amount of payment varies with

the profits of the business;

(e) As the consideration for the sale of the good will of a business or

other property by installments or otherwise.