Adams was approached by Mr.McCarthy of XYZ Co.,who requested that Adams pay $10 000 to extinguish a debt owed by the partnership of Adams and Jefferson.Adams denied the partnership and the liability.In asserting his claim,McCarthy cited the following facts,all of which he could prove.Which of these facts is the strongest evidence of the existence of a partnership?

Question

Quizplus · Accepted Answer

The fact that Adams and Jefferson shared profits from a business is the strongest evidence of the existence of a partnership. This indicates that they were jointly operating a business with the intention of making a profit, which is a key element of a partnership. Co-ownership of property (A) may indicate joint ownership or an informal arrangement, but it does not necessarily establish a partnership. Sharing gross returns (C) may indicate a joint venture or profit-sharing agreement, but not necessarily a partnership. Working together for a non-profit charity (D) is not a business activity and is therefore irrelevant to the existence of a partnership. Adams receiving a commission (E) may indicate an agency relationship, but does not necessarily establish a partnership.

Adams Was Approached by Mr