Professional Documents
Culture Documents
1. INTRODUCTION
a. Partnership is the simplest form of business organization.
It requires no formalities to create. It does not protect the
partners from liability. It ceases to exist at a stated time,
when a partner dies or a partner leaves the partnership.
Management of the partnership is in the hands of the
partners.
b. Partnership can last for a definite time or until a specified
event or at will.
2. DEFINITION
a. A partnership is an agreement by two or more persons to
go into business for a profit.
b. No formalities are required. This means that partnerships
are not chartered by the state, no writing is required and
the partners dont even have to have a subjective intent to
form a partnership. A partnership may be inferred from
conduct.
c. Partnerships can own property. Partners may be any
legal entity recognized by law as a person; i.e. a
corporation. Partners must have contractual capacity.
Sharing of profits raises a presumption of partnership.
Participation in management raises presumption.
d. Payment out of partnership proceeds does not raise a
presumption of partnership if payments are made to pay a
debt, for services, payment of a loan, or for sale of
goodwill.
3. PROPERTY OF A PARTNERSHIP
a. Property titled in the name of the pship is presumed to be
pship property.
b. Property purchased with pship funds is pship property.
c. Property that is in a partners name is presumed to be
property of that partner if pship funds were not used to
buy the property even if the property is used for pship
purposes.
d. Pship property does not belong to the individual partners,
but rather to the pship.
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Copyright 2007 by Daniel Wilson. Unauthorized use is prohibited and will be reported to the appropriate
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