Ch32 Creation and Operation of a Partnership Flashcards
Each partner has this to enter into binding contracts on behalf of the partnership.
Authority
Unless otherwise stated, profits and losses of the partnership will be shared ______________.
Equally
The partnership agreement must meet this many requirements of a valid contract.
Five
In absence of other evidence, it should be held that a partnership existed.
Prima Facie Evidence
Each partner must ___________ to the partnership for all business transactions.
Account
The partner has no right to withdraw any part of the original investment without the consent of the other partners.
Concent
This kind of damage can be done to the copartner by betraying their trust.
Irreparable
. A partner has ___________ of the torts of another partner committed in the course of partnership business (instructor: ignorance is no excuse).
Liability
If any partner __________ in this duty, the other partners have several legal remedies to redress the wrong.
Fails
In this type of partnership each partner owns and can sell only a pro rata interest in the partnership as an entity.
Tenancy
Unless otherwise stated; each partner has the duty to _________on behalf of the partnership.
Work
In a case of a false impression of a partnership, the law will frequently hold that the apparent partners are _________ from denying that a partnership exists.
Estopped
The partners have this type of liability on all partnership contractual liabilities unless the contract says otherwise.
Joint
A __________ partner does not get full ownership on the death of the other owner.
Surviving
This is the written partnership agreement.
Articles of Partnership
Cengage Learning: On the face of it
Prima Facie
Cengage Learning: Evidence sufficient on its face, if uncontradicted
Prima Facie Evidence
Cengage Learning: Written partnership agreement
Articles of Partnership
Cengage Learning: Ownership of partner in partnership property.
Tenancy in Partnership
- A partnership must be formed by a written agreement.
False
- If Juan and Sebastian want to form a partnership, they must draw up a written partnership agreement if the partnership is to be enforceable.
False
- All partnership decisions are made by majority vote.
False
- Each partner has the duty to inform the other partners about matters relating to the partnership.
True
- The Uniform Partnership Act requires that a partnership register a company name.
False
- A major breach of the partnership agreement may justify dissolution of the partnership.
True
- Articles of partnership hardly ever state how partners will share profits and losses.
False
- Felix and Art co-own a furniture store. Felix and Art jointly control the business and they share the net profits and losses derived from the store.
Situation a partnership exist between Felix and Art
- When evidence is proof of something in the absence of other evidence, it is said to be ________ evidence.
Prima Facie
- When the conduct of people who are not partners seems to mislead others into thinking they are partners, there is a partnership by ________.
Estoppel
- In a/n ________ in partnership, each partner owns and can sell only a pro rata interest in the partnership as an entity.
Tenancy
- Among the common duties that partners owe to each other include:
Duty to exercise loyalty and good faith.
- Bayer, a partner in the firm of Bayer and Black, without the consent of Black, used firm money in a speculative venture in her own name and realized a profit. Billingsley is the attorney who sets the venture up and files all the paperwork. Who would bear the loss if Bayer’s venture failed?
Bayer
