Partnership

Question 1

Intro without definition

Answer 1

Obligations due by partnerships to people who are not in the partnership, such as clients, suppliers, customers and the general public.
This question concerns partnership law. It relates to the duties owed by partners to persons outside the partnership. In the main, there are contained in section 5-18 of the partnership Act but these are important provisions elsewhere in the statute.

Question 2

Define partnership

Answer 2

Section 1.(1)

Question 3

Section 4(2)

Answer 3

“But an individual directed against the firm’ is a third party protection. States that partnership is a separate legal personality therefore it is separate to the partners included. Seeing as the partnership is a separate legal personality, it can be sued. If the partnership is sued the court action takes account all the partners involvement as of the partnerships, thus making it easier for third parties to get their money returned. Linking to section (5)

Question 4

Section 5

Answer 4

“Binds the other partner” which highlights that partners can be bound by the acts of the firm. The Partnership Act should then protect partners as they are incorporated into the contract as seen with the case of Bryan vs Butters Brothers 1892
- byrons wife lent him 1000 for the partnership and as evidence she got a receipt from the clerk to show that she had given him money for the partnership. Bryan took the money and ran away. Since a partnership is a legal personality Bryan’s wife sued the partnership as she was able to win the case and get her money back

Question 5

Section 9

Answer 5

Underlines the liability of partners where it states that every partner is jointly and severally liable with the other partners for the debts and obligations of the firm incurred while he is a partner and after his death. This clearly assure that partners are equally and severally liable.
In the case of sharing a flat, the tenants are jointly and severally liable for the rent and the condition of the flat. If there is a co-tenant who is not paying their share, the landlord could take action against the co-tenant as the liability is for the share as well as the condition of the flat. The landlord is the third party who is then protected as he is entitled to payments by both tenants as they have agreed to a contract and failure to this can allow the landlord to assert cautionary measures against the tenants

Question 6

Section 17

Answer 6

Liabilities of incoming and outgoing partners partners

- Thompson and Balfour against Borg and sons

Question 7

Section 36

Answer 7

Where a plus client is entitled to treat you as being as part of a firm until you’ve separately notified them
- Tower cabinets against engrim = public announcement to show exit
Prevents as false information to third parties being communicated engrim was part of tower company and he left but didn’t take his name off the letter head which means that if this letter goes out then people still think he is part of the company when in reality he isn’t

Question 8

Section 38

Answer 8

Continuing authority of partners for purposes of winding up. Even when the partnership is winding up, you have an obligation to third parties that you’ve entered into contact with to ensure those contracts are completed