Partnerships Flashcards
How can Partnerships be made up?
Individuals or Companies
Not another Partnership why?
Because they are not a separate legal personality
What is prima facie evidence of a partnership?
Receiving profits
When does a partnership come into existence?
As soon as the partners begin to carry on a business with a view to profit
Can a partnership own assets/ grant security over assets? Why
No - because not a separate legal personality
Can partnerships be sued or sue in their partnership name?
Yes
When is interest payable on capital contribution and how much?
When a partner advances in excess of their initial contribution. 5%
What are the two types of partnerships and which is the default?
Partnerships at Will (default)
Fixed partnership
What is actual authority?
Express or implied authority from other partners - partnership always bound
What is apparent authority
A partner does not have actual authority but appears to the 3rd party he does ~ partnership bound but partner could be personally liable
Will a partner be liable for future debts/existing debts
Existing - yes unless obtains agreement (tripartite or novation) from partners and creditors
Future - yes unless notice is provided to all dealings and the world by placing a notice in London gazette
Important to be removed from all stationary
What is holding out?
Where a partner is not a partner but represents themselves in some way to be
Firm could be bound but partner will be personally liable
Can a partnership granted fixed charges
Yes in their own name
Can a partnership grant floating charges
No
