Partnership 1 Flashcards
(20 cards)
What is a partnership according to business law?
A partnership is a relationship between persons carrying on a business in common with a view to profit.
What is the maximum number of partners allowed in a general partnership?
There is no statutory maximum in general partnerships
What is a partnership agreement?
It is a legal document outlining the rights and obligations of each partner.
How is a partnership formed?
By agreement between the parties
What is the key characteristic that distinguishes a partnership from other business entities?
Shared profits and joint responsibility for business operations.
Does a partnership have a separate legal personality?
No
What is the liability of partners in a general partnership?
Unlimited and joint liability for the debts and obligations of the business.
How can a partnership be dissolved?
By agreement
What happens if a partner dies?
The partnership is usually dissolved unless otherwise agreed in the partnership deed.
What is an LLP?
A Limited Liability Partnership that offers limited liability to partners and has a separate legal personality.
Who can bind a partnership in a contract?
Any partner acting within the scope of their authority or apparent authority.
What is ‘holding out’ in partnership law?
When someone represents themselves as a partner and is held liable as such.
How are profits typically shared in a partnership?
Equally
What duties do partners owe each other?
Fiduciary duties including loyalty
What is the Partnership Act 1890?
The legislation that governs general partnerships in the UK.
How can a partnership be terminated?
Through notice
What rights do partners have in management?
Equal rights unless otherwise agreed in the partnership agreement.
Can a partner assign their interest in the partnership?
Yes
What is the consequence of wrongful dissolution?
The partner at fault may be liable for damages to other partners.
What is the difference between a general partnership and an LLP?
General partnerships have unlimited liability; LLPs have limited liability and separate legal personality.
