LAW 603 Study Guide - Midterm Guide: Limited Liability Partnership, Limited Partnership, General Partnership
27 Nov 2017
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Created once a person begins to conduct a business. Simple to set up and close down. Two or more people come together to pool resources, with a view to a profit. Pg 540 partnership factors: sharing profit, sharing property, involvement in business, joint bank accounts and contracts, equal access to information, holding each other out as partners, engaging in ongoing activity. Special general partnership, not liable for professional negligence of partners. Liable as a partner if you hold yourself out to be a partner and allow another to hold you as a partner. Shareholders have limited liability, do not own the business. Becomes partner but avoid personal liability, has to have one general partner. Only exist when a partnership declaration is filed with the appropriate government authority. Three step model to risk management: identification recognize legal risks, evaluation assessment of legal risks, response - reaction to legal risks. Examine proposed relationship, contract states no partnership, restructure relationship, advice from lawyer.
