R8 General Partnership

Question 1

What are the elements of forming a general partnership?

Answer 1

The elements of forming a general partnership are:

1. Two or more persons
2. Who agree expressly or impliedly
3. To carry on as co-owners a business for profit

Question 2

Is a writing generally necessary to create a general partnership? What if the partnership is to own real property?

Answer 2

A general partnership can be formed whenever two or more persons agree to enter into a business for profits as co-owners. The agreement need not be in writing; indeed it need not even be oral. It can be implied from conduct, the fact that the partnership will own property does not change this, only if partnership will required to be for more than 1 year

Question 3

If the partnership agreement is silent, how are profits and losses divided in a partnership?

Answer 3

If partnership is silent, profits and losses are divided equally, regardless of the contribution of each partner

Question 4

For what services is a partner entitle to compensation if the partnership agreement is silent on the issue?

Answer 4

If the agreement is silent on the issue, a partner is generally not entitle to any compensation. There is an exception for the last surviving partner for services rendered to wind up the partnership’s affairs.

Question 5

A partner’s interest in partnership property is subject to attachment to satisfy the partner’s alimony obligation. True or false

Answer 5

False, a partner has no right to posses partnership property other than for partnership purposes, and a partner’s creditors cannot get any greater rights than the partner’s in such property

Question 6

What is the liability of each partner for the partnership obligations?

Answer 6

Partners are personally liable for all contracts entered into and all torts committed by other partners within the scope of the partnership business or which are otherwise authorized