Partnership

Front 1

S1

Back 1

Partnership is the relation which subsists between persons carrying on a business with a view of profit.

This is done on the basis of an oral or written contract or through express behaviour of the parties.

Front 2

Llott v Williams and others

Back 2

The partnership must be formed from more than a meer agreements there must evidence of a business in common being pursued.

Front 3

S2, what is not a partnership?

Back 3

- joint tenancy, TIC does not in of itself create a partnership

-Sharing of gross returns does not itself create. A partnership

- receipt of share of profits prima facie creates a partnership

Front 4

S2, what is a partnership?

Back 4

- to be involved in decisions that affect the business

- having a share in the profits

- examine the bussiness accounts

i-nsist on openess and honesty from fellow partners

- the ability to veto the introduction of a new partner

- sharing in any losses

Front 5

True or False- A partnership requires extensive formality to be formed

Back 5

False- a partnership requires no formalities to be formed, however it may be criticised for poor drafting (Ham v Ham)

Front 6

S9

Back 6

Each partner is jointly liable for any losses suffered.

Front 7

S14

Back 7

if a person is deemed to be "holding out" (puporting to be a partner), he is held liable any against any reliances made by a party dealing with the partnership, even if the person holding out is no longer a partner.

Front 8

S17

Back 8

Liabilities of Incoming and Outgoing Partners-

(1)A person who is admitted to a partnership after it has been formed is no liable to creditors for anything done before he became a partner

(2) A parnter who retires from the firm does not thereby cease to be liable for the partnership, debts or obligations incurred before his retirement

(3) an outgoing partner may be discharged from any existing liabilities by an agreement by that affect betwee himself and the firm and the creditors.

Front 9

S24(1)

Back 9

All partners shall be equally entitled to the share capital and profits of the business

Front 10

S24(2)

Back 10

All partners must contribute equally to the losses of the partnership

Front 11

S24(3)

Back 11

Partner making payment for purposes of the business beyond the amount of capital he agreed to subscribe is entitled to interest of 5% from the date of the agreement

Front 12

S24(4)

Back 12

no partner is entitled to interset on capital subscribed before the profits are ascertained

Front 13

S24(5)

Back 13

Every partner may take part int he management of the business

Front 14

S24(6)

Back 14

No partner is entitled to remuneration for acting in the partnership

Front 15

S24(7)

Back 15

No new partner introduced without unanimous consent of the existing partners

Front 16

S24(8)

Back 16

Orindary matters connected with partnership shall be resolved by a majority vote

Matters which affect the nature of the partnership may not be changed with unanimous consent

Front 17

S24(9)

Back 17

The parntership books are to be kept at the the place of business for the partnership and every partner may have access.

Front 18

S25

Back 18

No parnter may be expelled from the parntership unless expressly provided for in an agreement.