Partnership

Question 1

What are the typical matters agreed upon in a partnership?

Answer 1

ADD CIS CGT

• Accounts and audit
• Division of profits
• Drawings
• Combined capital and current account (or separate)
• Interest
• Salaries
• Capital
• Goodwill
• Time period

Question 2

What are the main provisions of the 1890 partnership act?

Answer 2

MEDICS IN BED

• Management
• Equality
• Derived benefit
• Indemnity
• Competing
• Salaries
• Interest
• No new person
• Books of account
• Expulsion
• Disputes

Question 3

What are the automatic and by court order grounds for dissolution of a partnership?

Answer 3

DISSOLUTIONS

• Death
• Insolvency
• Sending notice (in a partnership at will)
• Share of the firm is pledged by a partner to settle his private debts
• Object of the venture is ended
• Lapse of time
• Unable to carry out ones obligations under the partnership agreement
• Termination by the court under the principles of just and equitable
• Insanity
• Only able to carry on at a loss
• Nefarious conduct
• Shirty conduct (individual is consistently in breach of agreement)