Law 2101 Study Guide - Quiz Guide: General Partnership, European Corporate Law, Legal Personality
Document Summary
Based on a contract hence cannot be unilateral freedom of contract. Useful for fiscal transparency because tax deductions are granted for losses suffered by joint ventures (risky undertaking) Sole trader own business; can be started unilaterally own boss i. e barbershop, flower shop. Contractual personal relationship: contract can only be modified with the consent of all partners. Results in community of goods; co-ownership of contributions that are made to business. Pursue a common goal which in most cases is commercial and laid down in the contract i. e lawyer company. Severally liability means creditor can choose which debtor of the partnership he wants to go to for 100% of debt. Jointly liable means creditor goes to each partner/debtor for 50% of the debt. No continuity so if one partner dies then partnership is dissolved. Describe the main characteristics of limited liability companies. Legal personality: priority rule + liquidation rule + legal independent entity acting own capacity thus distinct from directors/shareholders.
