Partnership Is A Form Of Business Formed Essay

756 Words Mar 31st, 2015 4 Pages
Partnership is a form of business formed by agreement of parties which may either be express or implied agreement. In a partnership business, the partnership is liable for all business debts. In addition, each individual recognized as a partner is also personally liable of the partnership debts. The obligations of the partnership are binding only if the parties show evidence of the agreement either as express or implied. When such evidence exists, the parties will be liable for the debts of the partnership. Did Rob, Lulu, Ned and Mr Money bags sign agreement of partnership or have an implied agreement?
The first thing in making the judgment is to determine whether each of the accused had a binding agreement to the Romulus that would make them liable to the debts of the partnership. In doing so, we must determine whether the accused have express authority or implied authority to the partnership that would make them partners. Express agreement is whereby two or more parties agree to be partners whether in written contract or without one. Implied agreement means people act like partners. This implies that even if they do not expressly agree to be partners, they will still be considered by the law as partners. In this case, Jack and Mari have express agreement or authority to Romulus. They have a binding agreement to the debts of the company. Rob, Ned, Lulu and Mr. Money Bags have no express authority to bind Romulus to the contract with Bank of Money and Santa Rita Bank.…

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