MEE Rules Flashcards
(13 cards)
What are the requirements for a partnership?
An association of two or more persons to carry on as co-owners of a business for profit. Sharing profits raises a rebuttable presumption of partnership.
Are partners personally liable for torts by other partners?
Yes—partners are jointly and severally liable for torts committed by another partner within the ordinary course of partnership business.
What determines whether someone is an employee or independent contractor?
The right to control the manner and method of the individual’s performance.
Are partners personally liable for each other’s torts?
Yes, if the tort was committed in the ordinary course of partnership business, partners are jointly and severally liable after partnership assets are exhausted.
What determines whether someone is an employee or independent contractor?
The degree of control the employer has over the manner and method of work. More control = employee. Less control + independent resources = independent contractor.
What makes a contract assignment valid?
Contract is assignable unless prohibited or if it causes material change in duties.
When is a delegation invalid?
When it creates a material change in the promisor’s duties.
Who can sue after assignment?
The assignee can sue the assignor or promisor upon breach.
Who can enforce a contract as a third-party beneficiary?
Only an intended beneficiary.
What’s required for an intended beneficiary?
The contract must be made specifically to benefit them, and they are often named.
What is novation?
Agreement between all parties to release the original obligor and substitute a new one.
Who remains liable without a novation?
The original party (assignor) remains liable.
