CRC-ACE REVIEW SCHOOL

BUSINESS LAW ATTY. MARY ANN R. SAGANA

LECTURE AID PARTNERSHIP
PARTNERSHIP
- Two or more persons bind themseles to !ontrib"te mone#$ propert#$ or ind"str# to %
!ommon &"nd$ with the intention o& diidin' the pro&its %mon' themseles.
- Two or more persons m%# %lso &orm % p%rtnership &or the e(er!ise o& % pro&ession.
Essential Characteristics:
%. )onsens"%l e. *rin!ip%l
b. Bil%ter%l &. Nomin%te
!. +nero"s '. *rep%r%tor#
d. )omm"t%tie
Essential reqisites:
%. There m"st be % %lid !ontr%!t
b. The p%rties m"st h%e le'%l !%p%!it# to enter into the !ontr%!t
Pers!ns inca"acitate# t! enter int! a c!ntract !$ ni%ersal "artnershi":
,. spo"ses d"rin' the e(isten!e o& the m%rri%'e
-. between persons who %re '"ilt# o& %d"lter# or !on!"bin%'e
.. between persons '"ilt# o& the !ommission o& the s%me o&&ense in
!onsider%tion thereo&
/. between p"bli! o&&i!er or his wi&e or some other person b# re%son o& the p"bli!
o&&i!e.
b. There m"st be m"t"%l !ontrib"tion to the !ommon &"nd
C!ntri&ti!n t! a c!''!n $n#:
1. *ropert#0 re%l$ person%l$ t%n'ible or int%n'ible
2. Mone# 0 !%sh$ %nd le'%l tender e(!ept i& there is % stip"l%tion
3.Ind"str# 0 ment%l or ph#si!%l
IM*+RTANT1 limited p%rtners !%n onl# !ontrib"te mone# o& propert#.
!. The ob2e!t m"st be l%w&"l
E$$ects !$ nla($l "artnershi":
,. 3oid %b initio
-. *ro&its sh%ll be !on&is!%ted in &%or o& the 'oernment
.. Instr"ments or tools %nd pro!eeds o& the !rime sh%ll be &or&eited in &%or o& the
'oernment
/. )%pit%l !ontrib"tions will be ret"rned to the p%rtners "nless the !ontrib"tions
were "sed %s instr"ments or tools in the !ommission o& the !rime
d. The p"rpose or prim%r# p"rpose m"st be to obt%in pro&its %nd to diide the s%me
%mon' the p%rtners +R to e(er!ise pro&ession
e. The Arti!les o& *%rtnership m"st not be se!ret to %mon' its members
C!nseqences !$ a "artnershi" &ein) a "ers!n:
%. h%s % person%lit# sep%r%te %nd distin!t &rom the p%rtners
b. m%# %!4"ire %nd possess properties
!. !%n s"e %nd be s"ed "pon
d. !%n be %d2"d'ed insolent %ltho"'h the p%rtners %re solent
e. !%n in!"r obli'%tions
&. !%n enter into !ontr%!ts
*!r'alities reqire# $!r the creati!n !$ a "artnershi":
- *%rtnership m%# be !onstit"ted in %n# &orm e(!ept in the &ollowin' !%ses1
%. Where person%l propert# is !ontrib"ted %nd the !%pit%l is *.$555.55 or
more-
,. The !ontr%!t m"st %ppe%r in % p"bli! instr"ment
-. It m"st be re'istered with the Se!"rities %nd E(!h%n'e )ommission
6SE)7
b. Where immo%ble propert# or re%l ri'hts thereto %re !ontrib"ted
re'%rdless o& %l"e-
,. The !ontr%!t m"st %ppe%r in % p"bli! instr"ment
-. An inentor# o& the propert#$ si'ned b# the p%rtners$ m"st be %tt%!hed
to the p"bli! instr"ment
!. In !%se o& limited p%rtnership 0
,. The p%rtners m"st si'n %nd swe%r to % !erti&i!%te or %rti!les o& limited
p%rtnership whi!h st%tes the m%tters pres!ribed b# l%w
-. The# m"st &ile s"!h !erti&i!%te with the SE).
Statte !$ *ra#s in a Partnershi":
%. S%le o& person%l propert# when the pri!e is not les th%n *hp855$ "nless there is
delier# o& p%#ment
b. S%le o& re%l propert# or %n# interest thereon
!. *romise to %nswer &or the debt$ de&%"lt or mis!%rri%'e o& %nother person
d. A'reement to &orm % p%rtnership sh%ll be per&ormed %&ter , #e%r
e. Le%se o& p%rtnership propert# &or more th%n , #e%r
Princi"le !$ Delects Pers!nar'+"ers!na'+"ers!nae
- % r"le inherent in eer# p%rtnership wherein no one !%n be!ome % member o& the
p%rtnership %sso!i%tion witho"t the !onsent o& %ll the p%rtners.
- m"t"%l tr"st %nd !on&iden!e between %nd %mon' the p%rtners
Rles t! #eter'ine the e,istence !$ a "artnershi":
,. *ersons who %re not p%rtners to e%!h other %re not p%rtners %s to third persons.
Exception1 p%rtnership b# estoppel.
Partner &- Est!""el - A person who represents himsel&$ or !onsents to
%nother9others representin' him to %n#one$ %s % p%rtner either in %n
e(istin' p%rtnership or in one th%t is &i!titio"s or %pp%rent.
-. )o-ownership o& % propert# does not itsel& est%blish % p%rtnership$ een tho"'h the
!o- owners sh%re in the pro&its deried &rom the in!ident o& 2oint ownership.
.. Sh%rin' o& 'ross ret"rns %lone does not indi!%te % p%rtnership$ whether or not the
persons sh%rin' them h%e % 2oint or !ommon ri'ht or interest in %n# propert#.
/. Sh%rin' o& net pro&it 6or simpl# pro&it7 sh%ll 'ie rise to % disp"t%ble pres"mption o& the
e(isten!e o& % p%rtnership$ e(!ept when s"!h pro&its were re!eied in p%#ment1
%. %s % debt b# inst%llments or otherwise
b. %s w%'es o& %n emplo#ee or rent to % l%ndlord:
!. %s %n %nn"it# to % widow or represent%tie o& % de!e%sed p%rtner:
d. %s interest on % lo%n$ tho"'h the %mo"nt o& p%#ment %r# with the pro&its o&
the b"siness:
e. %s the !onsider%tion &or the s%le o& % 'oodwill o& % b"siness or other propert#
b# inst%llments or otherwise.
Classi$icati!n !$ Partnershi":
,. %s to ob2e!t. 8. %s to p"bli!it#
%. "niers%l p%rtnership %. se!ret p%rtnership
,. o& %ll present propert# b. notorio"s9open p%rtnership
-. o& pro&its
b. p%rti!"l%r p%rtnership
-. %s to li%bilit# o& the p%rtners1 ;. %s to its d"r%tion1
%. 'ener%l p%rtnership %. p%rtnership %t will
b. limited p%rtnership b. p%rtnership with % &i(ed period
.. %s to the le'%lit# o& e(isten!e1
%. de 2"re p%rtnership
b. de &%!to p%rtnership <. %s to p"rpose
%. !ommer!i%l9tr%din'
/. %s to represent%tion to others b. pro&ession%l9 non- tr%din'
%. ordin%r#9re%l p%rtnership
b. ostensible9p%rtnership b# estoppel
Classes !$ "artners:
,. As to !ontrib"tions /. +ther !l%ssi&i!%tions
%. !%pit%list %. li4"id%tin'
b. ind"stri%l b. re%l
!. dorm%nt
-. As to li%bilit# d. ostensible
%. 'ener%l e. se!ret
b. limited &. s"bp%rtner
'. nomin%l9p%rtner b# estoppel
.. As to m%n%'ement
%. m%n%'in'
b. silent
C!ntract !$ S&-"artnershi"
- one &ormed between % member o& % p%rtnership %nd % third person &or % diision o&
pro&its !omin' to him &rom the p%rtnership enterprise.
- it is % p%rtnership within % p%rtnership distin!t %nd sep%r%te &rom the m%in or prin!ip%l
p%rtnership.
PARTNERSHIP A.ENC/
,. h%s 2"ridi!%l person%lit# sep%r%te %nd distin!t
&rom the p%rtners
,. no 2"ridi!%l person%lit#
-. p%rtners %re %'ents &or the p%rtnership %nd
&or other p%rtners
-. %'ent is not % prin!ip%l himsel&
.. p%rtner is p%rt !o-owner with his !o-p%rtners
with respe!t to p%rtnership=s propert#
.. %'ent is not % !o-owner o& the
prin!ip%l
/. power o& %ttorne# i& not re4"ired &or % p%rtner
to %!t$ proided the %!t is within the s!ope o&
p%rtnership
/. power o& %ttorne# is ordin%ril#
re4"ired be&ore %n %'ent !%n %!t in
beh%l& o& the prin!ip%l
PARTNERSHIP CORPORATION
,. !re%ted b# mere %'reement o& the
p%rties
,. !re%ted b# oper%tion o& l%w
-. m%# be or'%ni>ed b# onl# two persons -. re4"ires %t le%st 8 in!orpor%tors
.. 2"ridi!%l person%lit# !ommen!es &rom
the moment o& e(e!"tion o& the !ontr%!t
o& p%rtnership
.. 2"ridi!%l person%lit# !ommen!es &rom
the moment o& iss"%n!e o& the )erti&i!%te
o& In!orpor%tion b# the SE)
/. m%# e(er!ise %n# power %"thori>ed b#
the p%rtners %s lon' %s it s not !ontr%r# to
l%w$ mor%ls$ et!.
/. !%n e(er!ise s"!h powers e(pressl#
'r%nted b# l%w or in!ident to its e(isten!e
8. i& no %'reement %s to m%n%'ement 0
eer# p%rtner is %n %'ent o& the
p%rtnership
8. power to do b"siness is ested in the
bo%rd o& dire!tors9tr"stees
;. % p%rtner %s s"!h m%# s"e % !o-p%rtner
who mism%n%'es
;. s"it %'%inst the bo%rd o& dire!tor who
mism%n%'es m"st be bro"'ht in the
!orpor%tion=s n%me
<. h%s no ri'ht o& s"!!ession <. h%s ri'ht o& s"!!ession
?.the p%rtners %re li%ble person%ll# %nd
s"bsidi%ril# &or p%rtnership debts
?. the sto!@holders %re li%ble to the e(tent
o& the sh%res s"bs!ribed b# them
A. b%sed on dele!t"s person%m A.not b%sed on dele!t"s person%m
,5. m%# be est%blished &or %n# period o&
time stip"l%ted b# the p%rtners
,5. m%# not be &ormed &or % period
e(!eedin' 85 #e%rs$ b"t s"b2e!t to
e(tension
,,. m%# be dissoled %t %n#time b# the
will o& %n# or %ll p%rtners
,,. m%# be dissoled onl# with the
!onsent o& the St%te
,-. de%th o& % 'ener%l p%rtner dissoles
the p%rtnership
,-. de%th o& % sh%reholder does not
dissole % !orpor%tion
,.. 'oerned b# the )iil )ode ,.. 'oerned b# the )orpor%tion )ode
.ENERAL PARTNERSHIP LI0ITED PARTNERSHIP
,. !omposed o& 'ener%l p%rtners ,. !omposed o& %t le%st one 'ener%l
p%rtner %nd one limited p%rtner
-. %s % 'ener%l r"le m%# be !onstit"ted in
%n# &orm
-. m"st be !ont%ined in % !erti&i!%te o&
limited p%rtnership
.. m"st oper%te "nder % &irm n%me .. m"st oper%te "nder % &irm n%me
&ollowed b# the word Blimited=
.ENERAL PARTNER LI0ITED PARTNER
,. Li%ble person%ll# &or p%rtnership
obli'%tions %&ter %ll p%rtnership %ssets %re
e(h%"sted
,. )%nnot be held li%ble
-. )%n p%rti!ip%te in the m%n%'ement o&
the p%rtnership
-. )%nnot p%rti!ip%te
.. M%# !ontrib"te mone#$ propert# or
ind"str# to !ommon &"nd
.. )%n !ontrib"te mone# or other
propert# onl#
/. N%me o& the 'ener%l p%rtner m%#
%ppe%r in &irm n%me
/. N%me o& limited p%rtner does not
%ppe%r in &irm n%me
8. Limit%tion on the ri'ht to en'%'e in
%nother b"siness or in the s%me @ind o&
b"siness %s th%t o& the p%rtnership
8. No s"!h limit%tion in limited
p%rtnership
O&li)ati!ns !$ the "artners (ith res"ect t! c!ntri&ti!n !$ '!ne- !r "r!"ert-:
,. )ontrib"te %t the be'innin' o& the p%rtnership or %t the time stip"l%ted
-. Answer &or ei!tion
.. Answer &or the &r"its o& the propert# !ontrib"ted in !%se o&
del%# in the delier#
/. E(er!ise dili'en!e oer the propert# pendin' delier#
8. Indemni&# the p%rtnership &or %n# d%m%'e or interest in !%se
o& mone#$ !%"sed b# the retention o& the s%me or del%# in the delier#
Other !&li)ati!ns !$ a "artner:
,. *%# &or interest %nd d%m%'es &or %n# s"m o& mone#
whi!h he m%# h%e t%@en &rom the p%rtnership !o&&ers:
-. )ontrib"te %ddition%l sh%re to the !%pit%l in !%se o&
imminent loss:
.. Brin' to the p%rtnership !%pit%l his sh%re o& %
p%rtnership !redit whi!h he re!eied &rom % debtor who s"bse4"entl# be!%me
insolent:
/. Indemni&# the p%rtnership &or d%m%'e !%"sed b# his
&%"lt %nd he !%nnot !ompens%te them with the pro&its or bene&its he m%# h%e
e%rned &or the p%rtnership:
8. Render tr"e %nd &"ll in&orm%tion o& %ll thin's %&&e!tin'
the p%rtnership "pon dem%nd o& %n# p%rtner or his represent%tie:
;. A!!o"nt to the p%rtnership %nd hold %s tr"stee %n#
bene&it deried b# him witho"t the !onsent o& the other p%rtners &orm %n# tr%ns%!tion
rel%tin' to p%rtnership b"siness:
<. Sh%re in the loss o& the p%rtnership.
O&li)ati!ns !$ an in#strial "artner:
,. )ontrib"te the ind"str# he promised
-. N+T to en'%'e in %n# other b"siness &or himsel&$ otherwise1
%. )%pit%list p%rtners m%# e(!l"de him &rom the &irm %nd dem%nd p%#ment o&
d%m%'es
b. )%pit%list p%rtners m%# %%il themseles o& the bene&its whi!h he m%# h%e
obt%ined &orm the other b"siness %nd dem%nd p%#ment o& d%m%'es
EC)E*TI+N1
- when e(pressl# permitted b# the p%rtnership
Ca"italist "artner:
- )ANN+T en'%'e in %n# oper%tion or b"siness simil%r to the b"siness o& the
p%rtnership$ otherwise1
%. Sh%ll be li%ble to the p%rtnership &or %n# pro&it obt%ined &rom his
tr%ns%!tions
b. Sh%ll person%ll# be%r %ll his losses
EC)E*TI+N1
-when the b"siness is not the s%me or simil%r to th%t o& the
p%rtnership
- i& there is % stip"l%tion to the !ontr%r#
O&li)ati!ns !$ the "artnershi" t! the "artners:
,. Re&"nd %mo"nts disb"rsed b# % p%rtner in beh%l& o& the
p%rtnership AND the !orrespondin' interest &rom the time the e(penses %re m%de
-. Answer &or the obli'%tions th%t the p%rtnership m%#
h%e !ontr%!ted in 'ood &%ith
.. Answer &or the ris@s in !onse4"en!e o& its
m%n%'ement
0ana)e'ent !$ the Partnershi"
0 3ested b# %'reement in one$ or some$ or %ll o& the p%rtners or een in % third person$
either in the %rti!les o& p%rtnership or %&ter the p%rtnership h%d %lre%d# been
!onstit"ted. I& there is no %'reement$ it is ested in %ll o& the p%rtners.
RULES:
,. The m%n%'er is %ppointed in the Arti!les o& *%rtnership1
- Ee m%# e(e!"te %ll %!ts o& %dministr%tion despite opposition o& other p%rtners
"nless there is b%d &%ith
- The power is irreo!%ble witho"t 2"st %nd l%w&"l !%"se
-. The m%n%'er is %ppointed or%ll# or in %n instr"ment other th%n Arti!les o&
*%rtnership1
- Ee m%# e(e!"te %ll %!ts o& %dministr%tion
- The power m%# be reo@ed %t %n# time with or witho"t 2"st %nd l%w&"l !%"se
.. In !%se two or more m%n%'ers %re %ppointed witho"t spe!i&i! d"ties1
- E%!h one m%# sep%r%tel# e(e!"te %!ts o& %dministr%tion b"t in !%se o& %n
opposition$ the de!ision o& the m%2orit# o& the m%n%'ers sh%ll pre%il.
- In !%se o& % tie$ the m%tter will be de!ided b# the m%n%'in' p%rtners ownin' the
!ontrollin' interest or more th%n 85F o& the inestments
- I& %ppointed in the Arti!les o& In!orpor%tion
-The power is irreo!%ble witho"t 2"st %nd l%w&"l !%"se
- I& %ppointed or%ll# or in %n instr"ment other th%n Arti!les o& In!orpor%tion
- The power m%# be reo@ed %t %n# time with or witho"t 2"st %nd l%w&"l
!%"se
/. In !%se two or more m%n%'in' p%rtners %re %ppointed with % stip"l%tion th%t none o&
them sh%ll %!t witho"t the !onsent o& the other1
- The !on!"rren!e o& %ll is ne!ess%r# &or the %lidit# o& their %!ts EC)E*T when
there is imminent d%n'er o& 'r%e or irrep%r%ble in2"r# to the p%rtnership
- I& %ppointed in the Arti!les o& *%rtnership
-The power is irreo!%ble witho"t 2"st %nd l%w&"l !%"se
- I& %ppointed or%ll# or in %n instr"ment other th%n Arti!les o& In!orpor%tion
- The power m%# be reo@ed %t %n# time with or witho"t 2"st %nd l%w&"l
!%"se
8. In !%se there is no stip"l%tion %s to the m%nner o& m%n%'ement1
- All p%rtners sh%ll be !onsidered %'ents o& the
p%rtnership
- None o& the p%rtners m%# m%@e %n# import%nt %lter%tion in the immo%ble
propert# een i& it m%# be "se&"l to the &irm
- In !%se o& %n opposition$ the de!ision o& the m%2orit# o& the p%rtners sh%ll
pre%il %nd in !%se o& % tie$ the m%tter sh%ll be de!ided b# the p%rtners
representin' the !ontrollin' interest$ or more th%n 85F o& the inestments.
Ri)hts !$ a "artner:
,. Re!eie his sh%re o& pro&its o& the p%rtnership
-. *%rti!ip%te in the m%n%'ement o& the &irm
.. Asso!i%te %nother person in his sh%re o& the pro&its
/. Inspe!t the p%rtnership boo@s %t %n# re%son%ble ho"r
8. Dem%nd &orm%l %!!o"ntin' een be&ore dissol"tion1
%. I& the p%rtner is wron'&"ll# e(!l"ded &rom the p%rtnership b"siness or
pro&ession o& its propert# b# his !o-p%rtners
b. I& the ri'ht e(ists "nder the terms o& %n# %'reement
!. I& % p%rtner h%s deried pro&its &rom %n# tr%ns%!tion !onne!ted with the
&orm%tion$ !ond"!t$ or li4"id%tion o& the p%rtnership or &rom %n# "se b# him o&
its propert#
d. Wheneer other !ir!"mst%n!es render it 2"st %nd re%son%ble
;. As@ &or dissol"tion o& the &irm b# !o"rt de!ree
Pr!"ert- ri)hts !$ a "artner:
,. his ri'ht to spe!i&i! p%rtnership propert#
-. his interest in the p%rtnership 6his sh%re in the pro&its %nd s"rpl"s7
.. his ri'ht to p%rti!ip%te in the m%n%'ement.
Ri)hts !$ a "artner in s"eci$ic "artnershi" "r!"ert-:
,. h%s %n e4"%l ri'ht with other p%rtners to possess spe!i&i! p%rtnership propert# &or
p%rtnership p"rposes
-. not %ssi'n%ble$ e(!ept in !onne!tion with the %ssi'nment or ri'hts o& %ll p%rtners in
the s%me propert#
.. not s"b2e!t to %tt%!hment or e(e!"tion$ e(!ept on % !l%im %'%inst the p%rtnership
/. not s"b2e!t to le'%l s"pport
E$$ects !$ c!n%e-ance &- a "artner !$ his interest in the "artnershi":
,. !one#%n!e o& his whole interest-p%rtnership m%# either rem%in or be dissoled:
-. %ssi'nee does not ne!ess%ril# be!ome % p%rtner:
.. %ssi'nee !%nnot inter&ere in the m%n%'ement or %dministr%tion o& the
p%rtnership b"siness or %&&%irs:
/. %ssi'nee !%nnot %lso dem%nd in&orm%tion$ %!!o"ntin' %nd inspe!tion o& the
p%rtnership boo@s.
Distri&ti!n !$ "r!$its 1 l!sses:
,. the p%rtners sh%re in the pro&its %nd losses %!!ordin' to their %'reement
-. in the %bsen!e o& s"!h1
%. !%pit%list p%rtner - in proportion to his !ontrib"tion
b. ind"stri%l p%rtner - wh%t is 2"st %nd e4"it%ble "nder the !ir!"mst%n!es b"t he
sh%ll not be li%ble &or losses
O&li)ati!ns !$ a ne(l- a#'itte# "artner:
,. +bli'%tions %lre%d# e(istin' be&ore %dmission
- li%bilit# is "p to the e(tent o& !ontrib"tion$ "nless otherwise %'ree.
-. +bli'%tions in!"rred %&ter %dmission
- li%bilit# is "p to the e(tent o& sep%r%te propert#$ "nless %dmitted %s % limited
p%rtner
DISSOLUTION
- the !h%n'e in the rel%tion o& the p%rtners !%"sed b# %n# p%rtner !e%sin' to be
%sso!i%ted in !%rr#in' on the b"siness.
EGGE)T1 Termin%tion o& %ll %"thorit# o& %n# p%rtner to %!t &or the p%rtnership.
EC)E*T1 ,. )ontr%!ts ne!ess%r# to wind "p p%rtnership %&&%irs
-. )ontr%!ts %lre%d# per&e!ted %nd be'"n b"t not then &inished
CAUSES *OR THE DISSOLUTION O* A PARTNERSHIP:
,. Witho"t iol%tion o& the %'reement between the p%rtners
%. termin%tion o& de&inite term
b. e(press will o& %n# p%rtner in 'ood &%ith
!. e(press will o& %ll p%rtners
d. e(p"lsion o& %n# p%rtner
-. In !ontr%ention o& the %'reement between the p%rtners where the !ir!"mst%n!es do
not permit % dissol"tion "nder %n# other proision o& this %rti!le$ b# the e(press will o&
%n# p%rtner %t %n# time.
.. Eent whi!h m%@es it "nl%w&"l &or the b"siness o& the p%rtnership to be !%rried or &or
the members to !%rr# it on in p%rtnership
/. Insolen!# o& %n# p%rtner or the p%rtnership
8. Loss o& spe!i&i! thin' promised %s % !ontrib"tion be&ore delier#
;. )iil interdi!tion o& %n# p%rtner
<. De%th o& %n# p%rtner
?. De!ree o& !o"rt
%. %t the inst%n!e o& the p%rtnership
,. p%rtner=s ins%nit#
-. in!%p%!it# o& % p%rtner to per&orm his p%rt o& the p%rtnership !ontr%!t
.. p%rtner=s %!t or !ond"!t pre2"di!i%l to the p%rtnership
/. p%rtner=s will&"l %nd persistent bre%!h o& the p%rtnership %'reement
8. p%rtnership is oper%tin' &or % loss
;. other simil%r !ir!"mst%n!es m%@in' the dissol"tion e4"it%ble
b. %t the inst%n!e o& % p"r!h%ser o& % p%rtner=s interest
,. %&ter the termin%tion o& the spe!i&ied term or p%rti!"l%r "ndert%@in'
-. %t %n# time i& the &irm w%s % p%rtnership %t will when the interest w%s
%ssi'ned or when the !h%r'in' order w%s iss"ed
WINDIN. UP
- the pro!ess o& settlin' the b"siness or p%rtnership %&&%irs "nder dissol"tion.

H"di!i%ll# 0 % w%# o& windin' "p % dissoled p%rtnership "nder the !ontrol %nd dire!tion
o& the proper !o"rt "pon !%"se shown b# %n# p%rtner$ his le'%l represent%tie o&
his %ssi'nee
E(tr%-2"di!i%ll# 0 w%# o& windin' "p b# the p%rtners themseles witho"t the interention
o& the !o"rt.
Partnershi" assets:
,. *%rtnership propert# in!l"din' 'oodwill
-. )ontrib"tions o& the p%rtners ne!ess%r# &or the p%#ment o& %ll li%bilities
Ter'inati!n
- the point in time when %ll p%rtnership %&&%irs %re wo"nd "p or !ompleted %nd is the end
o& the p%rtnership li&e.
Or#er !$ "a-'ent in the (in#in) " !$ "artnershi" lia&ilities:
%. those owin' to !reditors other th%n p%rtners
b. those owin' to p%rtners other th%n &or !%pit%l or pro&its
!. those owin' to p%rtners in respe!t o& !%pit%l
d. those owin' to p%rtners in respe!t o& pro&its
Li'ite# Partnershi" -- &ormed b# two or more persons h%in' %s members one or more
'ener%l p%rtners %nd one or more limited p%rtners.
RULES:
- the limited p%rtners sh%ll not be bo"nd b# the obli'%tions o& the p%rtnership
- the limited p%rtners do not p%rti!ip%te in the !ontrol or m%n%'ement o& the b"siness o&
the p%rtnership
- p%rtnership debts sh%ll be p%id o"t o& the !ommon &"nd %nd the sep%r%te properties o&
the 'ener%l p%rtners
- % limited p%rtner !%n onl# !ontrib"te mone# or propert#
- % limited p%rtner=s n%me !%nnot %ppe%r in the p%rtnership n%me$ otherwise he will be
li%ble %s % 'ener%l p%rtner$ e(!ept1
,. the s"rn%me o& the limited p%rtner is the s%me %s the s"rn%me o& % 'ener%l
p%rtner
-. be&ore the limited p%rtner be!%me %s s"!h$ the b"siness h%d been !%rried on
"nder % n%me in whi!h his s"rn%me %ppe%red
.. third persons e(tended !redit to the p%rtnership with the @nowled'e th%t he is
limited p%rtner
.eneral-Li'ite# "artner - h%s %ll the ri'hts %nd powers %nd is s"b2e!t to %ll li%bilities o& %
'ener%l p%rtner$ b"t still % limited p%rtner %s to li%bilit# to !ontrib"te
!%pit%l
S&stitte Li'ite# "artner - % person %dmitted to %ll the ri'hts o& % limited p%rtner who h%s
died or h%s %ssi'ned his interest in % p%rtnership
Pre$erre# Li'ite# "artner - 'ien priorit# oer %ll limited p%rtners in the ret"rn o& inestment$
!ompens%tion %nd other m%tters proided the %'reement will
%ppe%r in the !erti&i!%te o& limited p%rtnership
Diss!lti!n 'a- &e case# &-:
,. Retirement o& % 'ener%l p%rtner
-. De%th o& % 'ener%l p%rtner
.. Insolen!# o& % 'ener%l p%rtner
/. Ins%nit# o& % 'ener%l p%rtner
8. )iil interdi!tion o& % 'ener%l p%rtner
Or#er !$ "a-'ent in the (in#in) " !$ "artnershi" lia&ilities:
%. those owin' to !reditors$ e(!ept those to limited p%rtners on %!!o"nt o& their
!ontrib"tion$ %nd to 'ener%l p%rtners
b. those to limited p%rtners in respe!t to their sh%re o& the pro&its %nd other
!ompens%tion b# w%# o& in!ome in their !ontrib"tions
!.those to limited p%rtners in respe!t o& their !%pit%l !ontrib"tions
d. those to 'ener%l p%rtners other th%n &or !%pit%l %nd pro&its
e. those to 'ener%l p%rtners in respe!t to pro&its
&. those to 'ener%l p%rtners in respe!t to !%pit%l
9mrs