Partnerships

Question 1

Legislation

Answer 1

Partnership act 1890

Question 2

Definition

Answer 2

Business agreement between 2 or more parties, unincorporated (little legal formality) so relationship is a contractual one (written, implied, oral), no changes can be made unless all partners agree

Question 3

s24 if no agreement GP

Answer 3

Profits shared equally,

Question 4

General partnerships

Answer 4

All parties unlimited liability, share management responsibilities

Question 5

Limited liability partnership

Answer 5

All partners limited liabilities, have management responsibilities

Question 6

Limited partnership

Answer 6

General partners with unlimited liabilities and management responsibilities, some partners limited liability with no management responsibilities, only provide capital

Question 7

Agency

Answer 7

Relationship that exists between 2 parties where one engages in work for another (act as sales agent, negotiate contracts etc)

Question 8

Agents have fiduciary relationship

Answer 8

Based on good faith and trust, avoid conflict of interest

Question 9

Agent duties

Answer 9

Perform tasks with due care and skill expected from person in their profession, account for all information in transaction, duty of confidentiality even after agency has ended

Question 10

Agency termination (6)

Answer 10

Law, death, bankruptcy, mental incapacity, completion, mutual agreement