Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Limited Liability Partnership, Apparent Authority, Severability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Loren King

Document Summary

The business and who runs it are one. Legally you are the same as your business. You pay personal income tax on the income from the business. People began working together because many people needed more capital. Partners are personally responsible for the debts of the business. 2 or more people carrying on business together with a view to pro t (no such thing as a charitable partnership) Split pro ts, split decisions, share capital - all three have to be present. Relationship among partners - if the partners have not agreed, then these rules apply. Relationship between partners and the outside world. Every partner is an agent of the partnerships. Every partner is jointly and severability liable for the debts. Based entirely on agency - if you understand agency, then you understand partnership. Owe a duty of care, contract duty, duciary duty. Special kind of professional partnership where a partner is not responsible for the negligence of another partner.