1.6 - Implied Terms in the Partnership Agreement

Question 1

Section 24, 1

Answer 1

Profits and losses should be shared equally in the absence of contrary agreement

Question 2

Section 24, 2

Answer 2

Right to be reimbursed for expenses properly incurred in the course of business

Question 3

Section 24, 3 and 4

Answer 3

Entitled to interest of 5% on payments made to the partnership, which are beyond the amount of capital that was initially agreed to be contributed

Question 4

Section 24, 5

Answer 4

Every partner may take part in the management of the business (but doesn’t need to)

Question 5

Section 24, 6

Answer 5

Partner will take a share of the profits, rather than being entitled to a salary (but can be paid a salary e.g if all partners think that person does more)

Question 6

Section 24, 7

Answer 6

New partners needs consent of all existing partners

Question 7

Section 24, 8

Answer 7

Ordinary matters decided by majority of partners. Change in the nature of the partnership business must be unanimous

Question 8

Section 24, 9

Answer 8

Records and accounts to be held at main place of business and open to inspection by all partners

Question 9

Section 24, 10

Answer 9

Majority can only expel partner where partnership agreements gives them this power
^ allowed if partner has broken contract