Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Partnerships > Relations Between Partners > Flashcards

Relations Between Partners Flashcards

1
Q

In general, what is a partner’s right to manage the partnership?

A

All partners have EQUAL RIGHTS to manage partnership UNLESS there is an agreement otherwise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

In general, what is required to pass ordinary business decisions?

A

Decisions involving ordinary business –> can be controlled by majority vote of all partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

In general, what is required to pass decisions outside of the ordinary course of business?

A

Decisions outside of the ordinary course of business –> usually require unanimous vote of all partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the FOUR fiduciary duties owed by a partner to the partnership?

A
  1. duty of loyalty
  2. duty of care
  3. duty of obedience
  4. Duty to provide complete and accurate information
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Describe a partner’s duty of loyalty to the partnership (3)

A

A partner’s DOL to partnership requires that partner:

  1. ACCOUNT for all profits/benefits derived by the partner in connection with partnership business;
  2. refrain from DEALING ADVERSELY with partnership;
  3. refrain from COMPETING with partnership
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Describe a partner’s duty of care to the partnership

A

Partner must REFRAIN from:

- engaging in negligent, reckless, or unlawful conduct OR intentional misconduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Describe a partner’s duty of obedience to the partnership.

A

The “duty of obedience” requires that partner:

  1. OBEY all REASONABLE DIRECTIONS of the partnership; AND
  2. NOT act outside the scope of the partnership
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Describe a partner’s duty to provide complete and accurate information

A

Partner has a duty to provide COMPLETE and ACCURATE information concerning the partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the rule re: partner’s accounts?

A

Each partner is deemed to have an account that is credit with:

His contribution +
his share of profits -
his share of losses/liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What happens if a partner personally profits at the expense of the partnership?

A

That partner must account to the partnership for those profits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a partner’s right to renumeration?

A

In general –> a partner has NO right to renumeration for services rendered to the partnership

EXCEPTION –> partner may get REASONABLE COMPENSATION for services performed in winding up the partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the rule if a partner makes a payment or advance on behalf of the partnership in excess of his promised contribution?

A

The excess constitutes a loan that must be paid back with interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What happens if a partner promises to devote time to partnership business and fails to do so?

A

If a partner expressly or impliedly promises to devote time to partnership business and then fails to do so, she may be charged in accounting for damages caused to the partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the rule re: indemnification of partners by partnership?

A

The partnership MUST indemnify every partner with regards to PAYMENTS MADE and obligations REASONABLY INCURRED in carrying on the partnership business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a parent’s right with regards to her account act the time of dissolution?

A

A partner is entitled to settlement of her account at dissolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the rules re: Books and information (2)?

A
  1. Books and info must be kept at partnerships chief executive office
  2. Each partner has the right to inspect and copy partnership books
17
Q

What is a partner’s obligation to render information?

A

Upon demand, each partner must render true and full information of all things affecting the partnership

18
Q

What is the rule re: lawsuits by or against a partnership?

A

A partnership may SUE or BE SUED in its own name

HOWEVER –> to reach a partner’s personal assets, there must be a judgement against the individual partner

19
Q

Under what circumstances may partnership sue a partner (2) ?

A

A partnership may sue a partner for:

  1. breach of partnership agreement; OR
  2. breach of duty owed to partnership
20
Q

Under what circumstances can a partner sue the partnership or partners?

A

A partner may sue the partnership OR other partners to:

  1. enforce a right created by the PARTNERSHIP ACT or AGREEMENT OR;
  2. a right otherwise belonging to the partner

Partnerships (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions