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Partnership - Coggle Diagram
Partnership
Relationships of Partnerships
Liability of Partners
Criminal Liability - Not jointly Liable
Section 12 - Tortious
Section 11 - Contractual
Holding out of Information
Types of Partners
Dormant - Holds stake in the company but is not active in management
Salaried - Paid a fix salary and not a partnership share
Quasi - Active and substitutely represents the partnership
Active - Manages and represents the business
Capacity of Partners
Must be of Sound Mind and able to make decisions
Cannot be a minor, under 18 years old
3rd parties
Section 7 - All acts done by a partner bind other partners
Done within ordinary course of business
Done as a representing partner
Done for the purpose of the business
Elements of Partnership
Carrying on a business
Conducting business with a common goal
Association of persons
Natural Persons
Artificial Persons
Must be making a profit
Turning a profit at least once every 6 months
Nature of Partnership
Partnership Population
Normal Partnership 2-20 partnerships
Professional Partnership up to 200
Engineering
Accountancy
Law
Medical
All partners can be responsible for business operation
Partners have Unlimited Liability
Dissolution
Automatic Dissolution
Section 35
Death
Bankruptcy
Charge
Section 36
Illegality
Rights of the Partnership are terminated
Liable to be sued by a 3rd party
Section 34
Single Adventure
Notice
Fixed Term
Section 37 Court Intervention
Guilty of misconduct
Breach of Partnership
Incapacitated
Loss
Lunacy
Equitable
Determining Existence of Partnership
Section 4, Not Prima Ficae
4(b) Sharing of Gross Returns
4(c) Sharing of Profits
4(a) Joint Ownership/Tenancy
Legal Existence of Partnership
Payment for Annuity
Payment of Loan / Interest out of Loan
Remuneration
Sale of Goodwill
Payments of Debt by Installment