MGMT 108 Chapter Notes - Chapter 37: Law Of Agency, Unanimous Consent, Limited Liability Partnership
Document Summary
Each partner is deemed to be the agent of the other partners and of the partnership. Partners, like agents, are bound by fiduciary ties. The partners in a partnership agree to commit funds or other assets, labor, and skills to the business with the understanding that profits and losses will be shared. Each partner has an ownership interest in the firm. The uniform partnership act (upa) governs the operation of partnerships in the absence of express agreement. A partnership is an association of two or more persons to carry on as co-owners of a business for profit. Person includes corporations- so a corporation can be a partner in a partnership. The intent to associate is a key element- one cannot join a partnership unless all partners consent. Three essential elements determine whether a partnership exists: a sharing of profits or losses.
