Business Associations Outline Rules

Business Associations Outline Rules - University of West...

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Business Association Rules What is a Partnership An association of two or more persons to carry on as co-owners of a business for profit. Partnership Property All property originally brought into the partnership stock or subsequently acquired by purchase or otherwise, on account of the partnership is partnership property. Partner Accountable as a Fiduciary 1) Every partner must account to the partnership for any benefit, and hold as trustee for it any profits derived by him without the consent of the other partners from any transaction connected with the formation, conduct, or liquidation of the partnership or from any use by him of it’s property. 2) This applies to the representative of deceased of a deceased partner engaged in the liquidation of the affairs of the partnership as the personal representatives of the last surviving partner. Partner’s Liability All parties are jointly and severely liable for: 1) Act or omission to act caused by a partner in the ordinary course of the business of the partnership, whereby a third party is harmed. 2) Embezzlement of a partner to a third party when the partner is acting within the scope of his apparent authority. Partnership Liability – Payment Order The priorities of payments by the partnership are as follows: 1) Debts to creditors, other than partners. 3) Debts to partners in respect to capital. 4) Debts to partners in respects to profits. Actual Authority An agent acts with actual authority when, at the time of taking action that has legal consequences for the principal, the agent reasonably believes, in accordance with the principal’s manifestation to the agent, that the principal wishes the agent so to act. Apparent Authority 1
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The power held by the agent or other actor to affect a principal’s legal relations with third parties when a third party reasonably believes the actor has authority to act on behalf of the principal and that belief is traceable to the principal’s manifestations. Partnership Dissolution
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This note was uploaded on 09/21/2009 for the course LAW All taught by Professor All during the Fall '09 term at University of the West.

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Business Associations Outline Rules - University of West...

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