Partnerships
An association of 2/+ persons who are contractually bound to one another to
operate busi. jointly w/ main objective of making profit for common benefit. Each
partner contributes money, property, or services to joint partnership estate that will
be at disposal of + subject to risks of undertaking.
Nature: no legal personality partnership assets owned jointly by partners as co-
owners, jointly liable to creditors of partnerships. Claims in favour partnership jointly
enforced by all partners HOWEVER Uniform Rules of Court … allow partners & 3 rd
parties to institute legal proceedings for/against firm in name of firm, legal
convenience & NOT make partnership legal person.
Contract: Partnership agreement created relationship between parties, gives rise to
continuing rights & duties for parties inter se.
Share in loss: share in losses as agreed, in absence or agreement = same
proportion as profits shared. Partners may agree that some need not share in losses.
Partners jointly share overheads (costs) busi. + risk of total failure if financial
positions partnership no longer solvent because only net profit divided between
owners.
An association of 2/+ persons who are contractually bound to one another to
operate busi. jointly w/ main objective of making profit for common benefit. Each
partner contributes money, property, or services to joint partnership estate that will
be at disposal of + subject to risks of undertaking.
Nature: no legal personality partnership assets owned jointly by partners as co-
owners, jointly liable to creditors of partnerships. Claims in favour partnership jointly
enforced by all partners HOWEVER Uniform Rules of Court … allow partners & 3 rd
parties to institute legal proceedings for/against firm in name of firm, legal
convenience & NOT make partnership legal person.
Contract: Partnership agreement created relationship between parties, gives rise to
continuing rights & duties for parties inter se.
Share in loss: share in losses as agreed, in absence or agreement = same
proportion as profits shared. Partners may agree that some need not share in losses.
Partners jointly share overheads (costs) busi. + risk of total failure if financial
positions partnership no longer solvent because only net profit divided between
owners.
