Partnership_Reviewer.pdf - UM Digos College Department of...

This preview shows page 1 - 3 out of 6 pages.

UM Digos College Department of Accounting Education ACC 225- Partnership, Corporation, and Cooperatives REVIEWER ON PARTNERSHIP POWER OF PARTNER AS AGENT OF PARTNERSHIP Acts for carrying on in the usual way the business of the partnership Every partner is an agent and may execute acts with binding effect even if he has no authority Except: when 3 rd person has knowledge of lack of authority 1. Act w/c is not apparently for the carrying of business in the usual way 2. Acts of strict dominion or ownership: 3. Assign partnership property in trust for creditors 4. Dispose of good-will of business 5. Do an act w/c would make it impossible to carry on ordinary business of partnership 6. Confess a judgement 7. Enter into compromise concerning a partnership claim or liability 8. Submit partnership claim or liability to arbitration TIFF QuickTim (Uncompressed 9. Renounce c ar l e a n i e m eded t o o f see partnership Does not bind partnership unless authorized by other partners e™ and a ) decompressor this picture. Acts in contravention of a restriction on authority Partnership not liable to 3 rd persons having actual or presumptive knowledge of the restrictions EFFECTS OF CONVEYANCE OF REAL PROPERTY BELONGING TO PARTNERSHIP Title in partnership name, Conveyance in partnership name Conveyance passes title but partnership can recover if: 1. Conveyance was not in the usual way of business, or 2. Buyer had knowledge of lack of authority Title in partnership name, Conveyance in partner's name Conveyance does not pass title but only equitable interest, unless: 1. Conveyance was not in the usual way of business, or 2. Buyer had knowledge of lack of authority Title in name of 1/ more partners, Conveyance in name if partner/partners in whose name title stands Conveyance passes title but partnership can recover if: 1. Conveyance was not in the usual way of business, or 2. Buyer had knowledge of lack of authority Title in name of 1/more/all partners or 3 rd person in trust for partnership, Conveyance executed in partnership name if in name of partners Conveyance will only pass equitable interest Title in name of all partners, Conveyance in name of all partners Conveyance will pass title PARTNER BY ESTOPPEL by words or conduct, he does any of the ff.: 1. Directly represents himself to anyone as a partner in an existing partnership or in a non- existing partnership 2. Indirectly represents himself by consenting to another representing him as a partner in an existing partnership or in a non existing partnership