48.020 Partnership; Creation; Generally and as to Third Persons

48.020 Partnership; Creation; Generally and as to Third Persons A partnership may be created either by written or oral contract. Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property, or part ownership alone does not establish a partnership but are only factors to consider. The sharing of gross returns alone does not establish a partnership. Sharing of profits of the business, however, is prima facie evidence of the existence of a partnership provided that the share was not for a payment of the following: a. debt; b. wages, salary, or other compensation; c. rent; d. annuity; e. interest or payment on a loan; f. consideration for a sale. Except as provided otherwise by law (O.C.G.A.§14-8-16), persons who are not partners as to each other are not partners as to third persons. O.C.G.A. §14-8-7 A partnership is a contractual relationship and may result from an express agreement that the relationship shall exist or by implication from certain agreements that the parties have made. If the parties, by written or oral contract, expressly agree to become partners, a partnership is created. If they enter into an agreement whereby there is a joint ownership, use, or enjoyment of the profits of undivided property, real or personal, a partnership arises by implication. If two or more persons put into an enterprise property, money, or other things of value other than mere personal services upon agreement that they shall each have an interest in the profits and that the earnings on the investment shall determine the extent of all profits, if any, to be received, it is a partnership, although no mention may be made as to losses. Butler v. Frank, 7 Ga. App. 655 (1910) West Lumber Co. v. Chandler, 46 Ga. App. 408 (1933)