Michigan Compiled Laws

Mich. Comp. Laws § 449.7 (2026)

Rules for determining existence of partnership.

✓ current as of July 2026
Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

UNIFORM PARTNERSHIP ACT


Act 72 of 1917


449.7 Rules for determining existence of partnership.

Sec. 7.

    (Rules for determining the existence of a partnership). In determining whether a partnership exists, these rules shall apply:

    (1) Except as provided by section 16 persons who are not partners as to each other are not partners as to third persons;

    (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 employe 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 vary 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.

History: 1917, Act 72, Eff. Aug. 10, 1917 ;-- CL 1929, 9847 ;-- CL 1948, 449.7

Notes of Decisions
Cited in 12 cases (1 in the last 5 years), 1959–2025 · leading case: Kay Inv. Co., LLC v. Brody Realty No. 1, LLC, 731 N.W.2d 777 (Mich. Ct. App. 2007).
Kay Inv. Co., LLC v. Brody Realty No. 1, LLC, 731 N.W.2d 777 (Mich. Ct. App. 2007). · cites it 6× “See MCL 449.7; Berger, supra at 214-215 , 338 N.”
Byker v. Mannes, 641 N.W.2d 210 (Mich. 2002). · cites it 2× “Further, the Court of Appeals emphasis upon subjective intent as being of “prime importance in ascertaining whether a partnership exists,” slip op at 2, belies the absence in the statute of even a reference to such “intent” as a factor for consideration.”
Sunseri v. Proctor, 461 F. Supp. 2d 551 (E.D. Mich. 2006). · cites it 4× “See Mich. Comp. Laws § 449.7 (2002); Fla. Stat.”
Holmes v. Kraus (In Re Kraus), 37 B.R. 126 (Bankr. E.D. Mich. 1984). “7 states in pertinent part: (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…”
Paul v. U.S. Mut. Fin. Corp., 389 N.W.2d 487 (Mich. Ct. App. 1986). “MCL 449.7(4); MSA 20.7(4). Plaintiffs assert that plaintiffs purchased the business as individuals and not as a business entity.”
Miller v. City Bank & Trust Co., 266 N.W.2d 687 (Mich. Ct. App. 1978). “The Uniform Partnership Act, § 7, MCLA 449.7; MSA 20.7, provides some guidelines for determining the existence of a partnership.”
Brown v. Frankenmuth Mut. Ins., 468 N.W.2d 243 (Mich. Ct. App. 1991). “See Miller v City Bank & Trust Co, 82 Mich App 120 ; 266 NW2d 687 (1978); MCL 449.7; MSA 20.7. Frankenmuth also argues that the innocent-co-insured doctrine is inapplicable since H.”
Grosberg v. Mich. Nat'l Bank Oakland, 318 N.W.2d 490 (Mich. Ct. App. 1982). “Rules for determining the existence of a partnership are specified in MCL 449.7; MSA 20.7: "In determining whether a partnership exists, these rules shall apply: "(1) Except as provided by section sixteen [16] persons who are not partners as to each other are not partners as to…”
Barnes v. Barnes, 94 N.W.2d 829 (Mich. 1959). “See section 7, uniform partnership act, CL 1948, § 449.7 (Stat Ann § 20.7). The complete negation of any intent that William A.”
Crowell v. Twin Oaks Golf Course (In Re Twin Oaks Golf Course), 16 B.R. 383 (Bankr. W.D. Mich. 1982). · cites it 2× “7, Mich. Comp.Laws § 449.7 [Mieh.Stat.Ann. § 20.”
Martin Herman v. Jeffrey W Pickell (Mich. Ct. App. 2016). · cites it 2× “Defendant relies on MCL 449.7(4), which states in pertinent part: -4- (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:…”
Jeffrey West v. Charise Spink (Mich. Ct. App. 2025). “And MCL 449.7(4) states: 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: -2- (a) As a debt by installments or otherwise,…”
— Mich. Comp. Laws § 449.7(4) — 3 cases
Paul v. U.S. Mut. Fin. Corp., 389 N.W.2d 487 (Mich. Ct. App. 1986). “MCL 449.7(4); MSA 20.7(4). Plaintiffs assert that plaintiffs purchased the business as individuals and not as a business entity.”
Martin Herman v. Jeffrey W Pickell (Mich. Ct. App. 2016). “Defendant relies on MCL 449.7(4), which states in pertinent part: -4- (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:…”
Jeffrey West v. Charise Spink (Mich. Ct. App. 2025). “And MCL 449.7(4) states: 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: -2- (a) As a debt by installments or otherwise,…”
— Mich. Comp. Laws § 449.7(4)(a) — 1 case
Martin Herman v. Jeffrey W Pickell (Mich. Ct. App. 2016). “Defendant relies on MCL 449.7(4), which states in pertinent part: -4- (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:…”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.