6. Partnership - Rights and Liabilities Between General Partners Flashcards Preview

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Flashcards in 6. Partnership - Rights and Liabilities Between General Partners Deck (14):
1

Fiduciaries of each other and the partnership

What is the one duty partners own to one another?

Duty of loyalty

2

Fiduciaries of each other and the partnership

What is the name given to the remedial measure taken when a partner breaches the duty of loyalty?

Action for account

3

Rights in partnership property

What are the three categories of partnership property?

1. Specific partnership assets

2. Share in profits

3. Share in management

4

Rights in partnership property

What is the only category of partnership property which is freely transferable to individual members?

Share in profits

5

Rights in partnership property

What is required to transfer specific partnership assets?

Authority of the partnership

6

Rights in partnership property

What is the one question we ask when determining whether an asset is owned by the partnership or an individual partner?

Whose money paid for it?

7

Management

How is control in a partnership shared?

Absent an agreement, equally

8

Management

Does how much money a partner puts into the partnership determine their share of control?

No

9

Management

What requires unanimous vote, as opposed to just the usual majority?

Fundamental partnership matters

10

Salary

Do partners receive a salary?

Absent a agreement, no, irrespective of how much they work

11

Salary

What one thing will a partner receive remuneration for?

Helping to wind up the partnership

12

Profit and loss

Absent an agreement, how are profits shared?

Equally

13

Profit and loss

Absent an agreement, how are losses shared?

Not equally per se, but in the same way as profits in that particular fact pattern

14

Profit and loss

If there is an agreement on losses only, how are profits shared? How come?

EQUALLY

The rule does not work the other way