§ 40112. Enforcement by the Attorney General
TITLE 4: ECONOMIC RESOURCES DIVISION 4: CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS § 40112. Formation of Partnership. (a) Except as otherwise provided in subsection (b), the association of two or more persons to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership. (b) An association formed under a statute other than this chapter, a predeces- sor statute, or a comparable statute of another jurisdiction is not a partnership under this chapter. (c) In determining whether a partnership is formed, the following rules apply: (1) Joint tenancy, tenancy in common, tenancy by the entireties, joint prop- erty, common property, or part ownership does not by itself establish a part- nership, even if the co-owners share profits made by the use of the property. (2) The sharing of gross returns does not by itself establish a partnership, even if the persons sharing them have a joint or common right or interest in property from which the returns are derived. (3) A person who receives a share of the profits of a business is presumed to be a partner in the business, unless the profits were received in payment : (i) of a debt by installments or otherwise; (ii) for services as an independent contractor or of wages or other com- pensation to an employee; (iii) of rent; (iv) of an annuity or other retirement or health benefit to a beneficiary, representative, or designee of a deceased or retired partner; (v) of interest or other charge on a loan, even if the amount of payment varies with the profits of the business, including a direct or indirect present or future ownership of the collateral, or rights to income, proceeds, or in- crease in value derived from the collateral; or (vi) for the sale of the goodwill of a business or other property by in- stallments or otherwise. Source: PL 15-88, § 2(202), modified. Commission Comment: The Commission changed references to “this Act” to “this chapter” pursuant to 1 CMC § 3806(d).
Source: CNMI Law Revision Commission