Formation of General Partnership Flashcards
1
Q
Are there formalities to form GP?
A
None. Partnership formed from conduct.
2
Q
Can you define a partnership?
A
Two or more persons carrying on as co-owners of a business for profit
3
Q
What is the key factor to determine if a partnership exists?
A
Profit sharing!
4
Q
Who is liable for Partnership obligations?
A
Partnership and GPs- Partnership is a principal who is liable for actions of agents and the contracts they enter into in the scope of the business.
5
Q
How is authority derived in partnership?
A
Actual: words or conduct give rise to authority
Apparent: The appearance of authority
