Creation and Termination of Partnerships

Creation and Termination of Partnerships - Creation and...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Creation and Termination of Partnerships A. Nature and Creation -- A partnership may be created by a written agreement, oral agreement, or by estoppel. It is defined as the association of two or more persons to carry on as co-owners a business for profit. 1. Rights of the partners are determined by the partnership agreement. 2. Statute of Frauds 3. The law that governs partnerships has been codified and is found in the Uniform Partnership Act and the Revised Uniform Partnership Act. Any matter that is not covered by the partnership agreement is governed by the UPA or the RUPA. For instance, Section 18 of the UPA provides: A partner must abide by the terms of the partnership agreement. A partner has the duty to keep the other partners informed with respect to the partnership affairs and keep accurate records. Rights of partners as owners include the right to participate equally in the management of the partnership, inspect the books, and share in the profits. 4. Firm Name -- The partners may adopt any name they desire including a fictitious name. If the partnership uses a fictitious name it must make a fictitious name filing with the Clerk of the Circuit Court. The fictitious name filing simply consists of a certificate stating the name and addresses of the partners. 5. Each partner owes the utmost duty of “good faith” to the partnership as well as to the other partners. This means that a partner cannot open a competing business. A partner must not make the slightest misrepresentation and is prohibited from making a secret profit at the expense of the partnership.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '14
  • LaRoche
  • partner, partnership agreement

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern