An inference of the existence of a general partnership is drawn if profits are received in payment of wages owed to an employee.

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Profits received in payment of wages owed to an employee do not necessarily imply the existence of a general partnership. It is possible that the employer is simply sharing profits with the employee as a form of bonus or incentive, without creating a partnership relationship. A general partnership requires mutual intent to share profits and losses, as well as joint control and management of the business.

An Inference of the Existence of a General Partnership Is