Partnership law Flashcards
What is the uk definition of a partnership?
the relationship which exists between two or more people carrying on business in common with a view to profit
What is meant by, the business must be being ‘‘carried on’’?
should be more than 1 one-off transaction and continuing
What legislation covers partnerships?
The partnership act 1890
How are profits shared in a partnership?
all expenses taken from gross revenue first then profit is divided
who is liable for debts in a partnership>
all partners are jointly and severely liable for debts
Who are the agents in a partnership?
all partners are
How can partnership liability be voided?
if the partner was exceeding his authority, and the other party was aware of this or did not know he was in partnership that sole partner would be liable not the rest of the partners
How are partners formed?
by agreement as long as its legal
How are partners amended?
as it is formed by agreement its amended by agreement
How are partnerships terminated?
by agreement
What is a ‘‘partnership at will’’?
partnership with no time period
When partners fail to make arrangements about matters which are later disputed what happens?
Partnerships Act 1890 takes over
How is a partnership at will disolved?
through notice from a partner
What is shirty conduct?
where a partner is persistently in breach of the partnership contract
What are the main features of the Limited Partnerships Act 1907? LPA 1907
- at least one general partner (unlimited liability) and one limited partner (limited liability)
- must be registered with registrar of companies
- limited partner cant take part in management
- if firm becomes bankrupt only general partners are liable
What are the main features of the Limited Liability Partnerships Act 2000? LLPA 2000
- combines advantages of both partnerships and limited liability companies
- must be registered with registrar of companies
- must file financial statements and be audited
- limited liability for firms debts but wrongful and fraudulent trading apply
Which international country does not recognize partnerships?
French
What is the french equivalent of partnerships?
a person or group of people are acting for commerce,
What is required if acting for commerce in france?
- must maintain accounting records
* record particulars in the ‘‘commercial register’’
When two or more people are acting for commerce what are they called?
societe
What are the two types of Societes?
- societe en nom collectif
* societe en commandite simple
What is societe en nom collectif?
similar to to traditional uk partnership
What is societe en commandite simple
similar to limited partnership (one or more person has limited liability)
What are the three profit sharing operations that Muslim law recognizes?
1) Musharakah
2) Mudaraba
3) Shirkah al-inan
What is Musharakah?
similar to uk partnerships
- resources are pooled to invest in ventures
- decision making is shared
- profit and loss is shared
What is Mudaraba?
similar to limited partnerships
- dormant partner invests and shares profits
- investment appears as a loan but with no interest
- return by way of profit is not forbidden
What is Shirkah al-inan?
similar to traditional partnership
- participants invest money and share profits
- partners not liable for debts of other partners
- can only sue on contracts they entered into themselves
Can partnerships secure debts with floating charge?
no
