LAW 1310 Lecture Notes - Lecture 5: Profit Margin
16 Feb 2018
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What to put in a partnership agreement: profits, losses, you have to have it written down, otherwise, it will divide equally regardless of what % of the business you own. First legal right of partnership is that every partner gets to involve in management. The upa says that you may divide the management authorities anyway you want. It does not have to be equal and many partnerships are built on this. You (cid:272)a(cid:374)"t (cid:271)e so(cid:373)eo(cid:374)e"s part(cid:374)er (cid:449)he(cid:374) you are (cid:374)ot allo(cid:449)ed to parti(cid:272)ipate i(cid:374) management. If the upa does not have it, if it is left out on the upa, then the management authorities are shared equally. Part(cid:374)ers do(cid:374)"t ha(cid:448)e a(cid:374)y legal right to get a salary. If they did get a salary, it means that they are working for someone else. This factor is also a motivation tool because they would work harder to make a higher profit margin.
