Partnerships

Question 1

Partnership property

Answer 1

It is partnership property if it was brought into the partnership with the intention that it would be partnership property

Question 2

Can a partner assign their share of profits to a non-partner?

Answer 2

Yes - assignment.

A partner’s right to a share of the profits is assignable - no need to get consent from other partners.

Need unanimous consent from partners to add partner to the partnership.

Question 3

Partnership - what 4 decisions require unanimous vote from partners?

Answer 3

1. the introduction of a new partner,
2. a change in the nature of the partnership business,
3. an alteration to the partnership agreement,
4. the expulsion of a partner.

Question 4

In what circumstances can a partner withdraw from a partnernship

Answer 4

Partner can withdraw from partnership at any time.

Partnership ends at time of withdrawal because there is no separate legal personality