MGSC30H3 Lecture Notes - Lecture 2: Sole Proprietorship, Legal Personality, Estate Planning
Document Summary
Other laws apply to the business, such as licensing and regulation. Created by common law, but codified in partnership act. Or the partnership can be created by conduct. Court may deem persons to be partners, regardless of what they call their relationship. Owning property is not by itself carrying on business. Single venture may, or may not, constitute carrying on business. Contrast commercial activity with living off rents. Middle class conducted business, while the nobles lived off property and would not lower themselves to commercial affairs. In general, partners share the profits of the business. Profits are calculated after expenses, so sharing gross revenues, or charging a royalty, does not involve partnership. Partners generally work together as equals in the business, or share in proportion to their capital contribution. A partnership is not a separate legal person. But we speak of the firm which partners leave and join. Partnership property is not owned directly by the partners.
