Partnership Property Flashcards
Partnership Capital
the property or money contributed by each partner for the purpose of carrying on the partnership’s business.
Partnership Property
everything the partnership owns, including both capital and property subsequently acquired in partnership transactions.
What restrictions are there on what can be partnership property?
none
Under RUPA, titled property is *deemed to be partnership property if:
1) it is titled in the partnership name; or 2) it is titled in the name of one or more partners and the instrument transferring title notes the titleholder’s capacity as a partner or the existence of a partnership.
Under RUPA, titled property is *rebuttably presumed to be partnership property if:
it was purchased with partnership funds or credit.
Under RUPA, titled property is *rebuttably presumed to be a partner’s separate property if:
1) the property is held in the name of one or more partners; 2) the instrument transferring title does not indicate the person’s capacity as a partner or mention the existence of a partnership; and 3) partnership funds were not used to acquire the property.
What criteria will courts consider in determining whether untitled property is separate or partnership property?
acquisition of the property using partnership funds; use of the property by the partnership in conducting the partnership’s affairs; entry of the property in the partnership books as an asset; a close relationship between the property and the business operations of the partnership; improvement of the property with partnership funds; and maintenance of the property with partnership funds.
Do partners have an ownership interest in partnership property?
no, because they are not co-owners of partnership property.
For what purpose can partners use partnership property?
only for the benefit of the partnership.
