Other Free Encyclopedias » Law Library - American Law and Legal Information » Free Legal Encyclopedia: Ordinary resolution to Patients' Rights - Consent » Partnership - Formation, Relationship Of Partners To Each Other, Relationship Of Partners To Third Persons, Liability

Partnership - Formation

business person profits persons

The formation of a partnership requires a voluntary "association" of persons who "coown" the business and intend to conduct the business for profit. Persons can form a partnership by written or oral agreement, and a partnership agreement often governs the partners' relations to each other and to the partnership. The term person generally includes individuals, corporations, and other partnerships and business associations. Accordingly, some partner-ships may contain individuals as well as large corporations. Family members may also form and operate a partnership, but courts generally look closely at the structure of a family business before recognizing it as a partnership for the benefit of the firm's creditors.

Certain conduct may lead to the creation of an implied partnership. Generally, if a person receives a portion of the profits from a business enterprise, the receipt of the profits is evidence of a partnership. If, however, a person receives a share of profits as repayment of a debt, wages, rent, or an ANNUITY, such transactions are considered "protected relationships" and do not lead to a legal inference that a partnership exists.

Partnership - Relationship Of Partners To Each Other [next]

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or

Vote down Vote up

over 3 years ago

I am getting the course of management accounting,and we are now studying ACCTG.102A or known as partnership and corporation.I want to know more about partnership. I hope that I can get more from you, thank you.

Vote down Vote up

almost 3 years ago

Please provide me with the demonstration of partnership and how solve problems-calculation.

Vote down Vote up

about 5 years ago

patnership is an association of two or more persons to carry on a business as coowners & business must be for the profit.

Vote down Vote up

almost 3 years ago

Please provide me with the demonstration of partnership and how solve problems-calculation.

Vote down Vote up

over 6 years ago

Mrs,



My name is Fabio Rodrigues. I´m a brazilian lawyer and I´m doing a research about "PartnerShip" or "Relationship of Partners". In Brazil, its name is "Sociedades em Conta de Participação".



I´d like more information about this.



Best regards!