LAW 122 Study Guide - Final Guide: Fiduciary, Professional Negligence In English Law, Independent Contractor
2 Apr 2017
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Partnership (also known as general partnership) (most common) When 2 or more people carry on business together with a view to profit. There are no formal requirements for creating a partnership. The creation of a partnership is automatic: a partnership comes into existence in law when two or more people carry on business together with a view to profit, without the need for any further formality. This means that a person can become part of a partnership without necessarily realizing it! Carrying on business together: not a casual, one -off transaction. Sharing profits (not just revenues) or losses. Jointly owning property or jointly contributing capital. Joint authority for contracts and bank accounts. Holding each other out as partners or acquiescing (when you do not do anything to stop the rumor of partnership) Engaging in ongoing activity rather than one project. Income to partnership is personal income to partners. Provides default rules, which can be supplemented or modified by partnership agreement.
