LAW 122 Lecture Notes - Lecture 6: Legal Personality, Sole Proprietorship, Numbered Company
8 Dec 2016
School
Department
Course
Professor
Document Summary
Liability and benefits of entrepreneurs and other stakeholders differ depending on type of business organization. Arises once person begins to conduct a business. E. g. start (cid:272)utti(cid:374)g so(cid:373)eo(cid:374)e"s la(cid:449)(cid:374) for (cid:373)o(cid:374)ey. No separation between business and proprietor (owner): Laws generally applicable to businesses apply to sole proprietors, such as: Only if name other than personal name. A partnership exits when two or more people carry on business together with a view to a profit. Partnership creation automatic when relationship begin: formalities are required. Holding each other out as partners or acquiescing. Engaging in ongoing activity rather than one project. No separation between partner and partnership (can a partnership hire a partner as an employee?) Income to partnership is personal incomes to partners. Provides default rules, which can be supplemented or modified by partnership agreement. Each partner can commit the partnership to obligations. Unless the partners agree otherwise, the default termination rules are: Any partner may terminate partnership on notice.
