Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Hi, my name is XXXXX XXXXX I'd be happy to answer your questions today.
No, a person is not a partner simply because he invested some money with a friend. To form a partnership, there must be an agreement that the people involved will act as partners.
It doesn't have to be in writing, but there has to be a meeting of the minds: who does what, the purpose of the partnership, when it ends, etc.
It doesn't have to be in writing? Verbal agreement partnership is legal then?
Yes, it is. As long as you agree to be partners. If the agreement was only that one person would invest, that's not a partnership.