LAWS 3201 Study Guide - Midterm Guide: Fiduciary, Unanimous Consent, New York Fries

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4 Feb 2016
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They are the sole owner of the business and only person entitled to manage it. One disadvantage is that the sole proprietor may not be an employee of the business. All benefits accrue to the sp and all obligations of the business is their responsibility. This comes into being a matter of law when two or more persons carry on business together with a view to a profit. Disadvantages of partnerships are each partner is liable to perform all contractual obligations agreed to by other partners in connection with the partnership business, even if the partner did not consent to the obligation. Once liability for an obligation has been established, each partner is liable to the full extent of the obligation. All their personal assets may be seized to satisfy that obligation. Partnership statutes provide that each partner is liable to contribute equally to any obligation owed by the partnership to a third party.