LAW 122 Lecture Notes - Lecture 5: Professional Negligence In English Law, Fiduciary, Limited Liability Partnership

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

Comes into existence when a person begins to conduct business on his or her own, without adopting any other form of business organization (e. g. start cutting someone"s lawn for money) Liability regime: proprietor entitled to all income, proprietor liable for all obligations, proprietor"s assets available for business debts, business income (loss) on personal income, proprietor cannot be employee of business. Third parties may take all the sole proprietor"s personal assets (not just those of the business) to satisfy the business"s obligations. The proprietor is exclusively responsible for: performing all contracts entered into in the course of the business, all torts committed personally in connection with the business. The proprietor is also vicariously liable for all torts committed by employees in the course of their employment. The only method of financing is for the sole proprietor to borrow money directly. No formal registration as a sole proprietorship is required. (compare this to incorporation, where formal steps are required. )