4. Partnership Property

Question 1

What is considered partnership property?

Answer 1

All property originally brought into the partnership stock on account of the partnership

This includes cash, contributions in kind, goods, labor, or skill brought into the business at its formation.

Question 2

What type of property is presumed to be partnership property?

Answer 2

All property subsequently acquired by purchase in the partnership’s name

This presumption applies unless there is evidence to the contrary.

Question 3

If property is purchased with partnership funds, who owns it?

Answer 3

The partnership owns it, even if held in the name of an individual partner or partners

This ensures that partnership assets are protected.

Question 4

What happens if property is acquired in the name of an individual partner without using partnership funds?

Answer 4

It is presumed to be the separate property of that individual partner

This applies even if the property is used for partnership purposes.

Question 5

Can real property be acquired in the partnership name?

Answer 5

Yes, any estate in real property may be acquired in the partnership name

There is no requirement that title be taken in the firm name.

Question 6

What is the implication of holding real property in one partner’s name?

Answer 6

It is presumed to be partnership property unless this prejudices a third party without actual knowledge

This protects external parties relying on public records.

Question 7

Who may convey title if real property is in the partnership name?

Answer 7

Any partner may convey title by a conveyance executed in the partnership’s name

This assumes authority unless proven otherwise.

Question 8

What can a partnership do if a partner conveys property without authority?

Answer 8

The partnership may recover the property from the grantee

This is contingent upon the grantee not being a holder for value without knowledge.

Question 9

If title to real property is in the name of one or more partners, who can convey it?

Answer 9

The partners in whose name the title stands may convey title

The partnership can recover the property if the act was unauthorized.

Question 10

What happens if a partner conveys property in the name of the partnership or their own name?

Answer 10

It passes the equitable interest of the partnership unless unauthorized

Question 11

What occurs when title to real property is in the name of all partners?

Answer 11

A conveyance executed by all partners passes all their rights in the property
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