Please enable JavaScript.

Coggle requires JavaScript to display documents.

Partnership Logo (1), AC1104F, Ahmad Iqbal Hakim bin Mohd Zabidin,…

- - - - Section 2- 'Business' refers to any trade, occupation or profession
      - There will be no partnership if the parties are preparing a business for future
    - - Section 47(2)- the maximum number of partners allowed in a partnership is 20
    - - partners must be involved in the same venture for a common purpose
    - - Must have profit motive
      - Charitable or religious organization, clubs, societies & co-operative are NOT partnership
  - - - -refers to ownership of property by two or more persons
    - - Section 4(c)(i)-Repayment of share of profits
        
        Section 4(c)(ii)- Payment of remuneration to servant
        
        Section 4(c)(iii)- Payment of annuity to the widow or children of a deceased partner out of profit
        
        Section 4(c)(iv)- Repayment of interest on a loan out of the profit
        
        Section 4(c)(v)- Sale of goodwill
- - - - no active part in the management but liable as partner
    - - not a partner but liable for debts of the partnership
    - - actively participates in the management of the business
    - - a partner who received fixed remuneration
    - - partner in the fullest sense
- - - - (1) Joint liability(for living partner)
      - (2) Several liability (for deceased partner)
    - - Such as negligence, nuisance,defamation
        
        The wrongful act is done by a partner in the ordinary course of business of the firm+ case: Hamlyn v Houston&co
        
        2.where a wrongful act of a partner is done with the consent/authority of the other partners + case: Polkinghorse v Holland
    - - arise in 2 cases:
        
        a) where money or property is received by a partner acting within the scope of his apparentt authority + case: Blair v Bromley
        
        b)where the money is received by the firm + case: Rhodes v Mules
    - - a third party can take action against the partners of the firm either jointly or severable
        
        sec 14: " every partner is liable jointly with his co-partners and also severally for everything for which the firm become liable
    - - if a trust property has been entrusted to a partner as a trustee and it has been improperly used by a partner in the partnership business, the other partners cannot be made liable unless they knew of the breach of trust
    - - when a person who is not a partner, makes it known either by his words or conduct to a third party that he is a partner, due to his representation, he would be liable as if he was a partner
    - - under sec 19(1)- a new partner is not liable for any contract or debt incurred to his becoming partner
      - sec 19(2)- a partner who has retired remains liable for partnership debts or obligations incurred whilst he is a partner
    - - criminal liability is PERSONAL LIABILITY of the partner who commits the crime, especially a crime that requires mens rea( a mental intent to commit a crime)