BU451 Chapter Notes - Chapter 26: Unanimous Consent, Fiduciary, Letterheads
Document Summary
Nature of partnership: come into existence without formalities, can occur just by actions, subject to many regulations that apply to all forms of business, eg. municipal license is normally required for electricians, plumbers etc. Partnership is the relation which subsists between persons carrying on a business in common with a view of profit : persons can be found to be partners even though no written or oral agreement exists if they acted. Creation of a partnership: partnership agreement (written or oral, main purpose is to set out as carefully and clearly as possible, the entire terms of the relationship: Nature of the business to be carried on. Duration of the relationship, method of terminating the partnership. Division of profits: the partnership act sets out implied terms that fill in any gaps in a partnership agreement. If you forget to state how profits are divided, the act will make it fifty-fifty.
