QUESTION 2
The relations between partners to one another are determined by their partnership agreement. The partnership agreement normally provides for the rights and duties of the partners, the conduct and management of the firm, the capital and their profit-sharing arrangement. The Partnership Act 1961 applies in the absence of provisions being made under the agreement. Discuss.
The definition for Partnership are when two or more individuals join together to form business. Each person will contribute money, labor or skill, and other resources and expects to share the profits and losses of the business.In the compliance to form a partnership there must be, a consent and consideration, parties must be competent to be a partner, it can be created by a formal deed or a written agreement or even orally, also there must be a lawful purpose.
Apart from that,partnership can be formed without a written agreement, but the rights and obligations will be determine by the state law
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“Persons who have entered into partnership with one another are called a firm”. In section 7 of the Partnership Act 1961, “Every partner have the power to bind the firm since they are the agent of the firm, unless the partner has no authority to act for the firm and the person with whom he is dealing either knows that he has no authority or does not believe him to be a partner”("Partnership Act," 1961). Partners are also bound by the acts on behalf of firm. In the Partnership Act 1961, Section 11 stated that “every partner in a firm is liable with the other partners for all debts and obligations of the firm incurred while he is a partner”("Partnership Act," 1961). The partner are not allowed to compete with the firm. If a partner, without the permission of the other partners, carries on any business in the same field as a competitor of the firm, he must give the firm all the profit made by him in the business. This is based on Section 32 of the
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
T. Paulette Sutton is one of the world’s leading experts in bloodstains and is the former Assistant Director of Forensic Services and Director of Investigations at the University of Tennessee, Memphis. She has been involved in nationally known murder cases and has worked hard during her long career to make a position contribution to the legal system. Sutton says, “Its best for my fellow man that we get the killers off the street.” Since 2006 Sutton has been officially retired but continues to teach, consult, and testify about her area of expertise.
Wolford General Partnership (WGP) operates plumbing supply business which is also an exclusive supplier for certain stable construction firms. Because of its excellent reputations and services, WGP is able to an extremely profitable entity for the business. WGP uses an accrual method of accounting and has been using June 30 fiscal year for the tax report purpose after its election of §444 since its formation.
This case comprises the plaintiffs, who file a lawsuit against the defendants for denying them overtime pay, which are an infraction of extra hour’s provisions and exemptions under the Fair Labor Standard Act. These non-exempted employees worked 59.33 hours per week with 19.33 additional hours being overtime hours. Moreover, the plaintiffs unpaid hours combined totaled 9,483 in a permissible retro. The claimant’s claim was asserted and bestowed $12, 207,880.84 plus attorney’s fees of, $119.843.75.
harm overtakes the righteous, but the wicked have their fill of trouble” (Prov. 12:21, English
In 2001, Australian legislation that sets out laws that govern business entities under both state and federal governments was passed. Implemented as the Corporations Act 2001 (Cth), the Act sets out rules and regulations for the standard that businesses should be operating in Australia, including the creation of new companies and how they conduct their operations.1 The Act is administered under the Australian Securities and Investments Commission (ASIC) who are a government body responsible for implementing corporate laws and holding businesses accountable for their wrongdoings.2 In relation to business ethics, stating that corporate law was designed to enhance this area of business implies that legislators have business ethics as a priority when determining the purpose of new legislation that is being passed. Business ethics is the body of principles that business people ought to follow when behaving in the workplace, as well as the moral attitudes they should adopt.3 By incorporating provisions in the Corporations Act 2001 (Cth) that enable ASIC to deal with those who do not follow
When it comes to contracts, there are certain elements or requirements, which need to be met in order for the contract to be valid. Defined, a contract is “an agreement that can be enforced in a court; formed by two or more parties who agree to perform or refrain from performing some act now or in the future” (Hollowell & Miller, 2014, p. 110). With contract law, there is the enforcement of promises made between two parties, even if made in private. Additionally if a promise is made, there is the possibility of the obligation falling into a moral liability rather than a legal liability. All in all, when it comes to business agreements, contract laws will apply to avoid any possible problems that may arise.
Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.
Intention to create legal relations can be defined as follows. ‘An agreement will only become a legally binding contract if the parties intend this to be so. This will be strongly presumed in the case of business agreements but presumed otherwise if the agreement is of a friendly, social or domestic nature.’ Source (HNC unit 5 Business law course book) In determining whether the parties intend their agreements to be legally binding the court is guided by two presumptions. Parties to a domestic or social agreement do not intend to be legally bond. Parties to a business agreement intend to be legally bond. These are presumptions only and can be rebutted by sufficient evidence to the contrary. Domestic and Social Agreements Balfour v Balfour (1919) Merritt v Merritt (1976) Simpkins v Pays (1955) Business Agreements Jones v Vemons Pools (1938) Source (HNC Business law notes) One of the essential elements in the creation of a binding contract, this intention is implied by the fact that it is not expressly denied. If expressly denied (as in a so-called gentlemen's agreement) the contract may not be enforceable. Consideration {text:bookmark-start} {text:bookmark-end} If you look at a legal agreement or contract, you will generally see a phrase in the opening paragraph indicating that the parties agree on an amount of money or "other good and valuable consideration." The concept of consideration has a long history in the law, but simply means something of value. An exchange of consideration between the parties to an agreement is necessary fo...
Another example of business ownership is a partnership. Examples of partnerships used in business are accounting firms and solicitors firms. A partnership has two or more owners. They work, manage and are responsible for the running of the business. Individual partners may concentrate on a certain aspect of the business where they have expert knowledge. As there is more than one owner, larger amounts of capital can be fed into the business via personal funding or bank loans. Partnerships have an unlimited liability.
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.
The area of law that is required in order to form a legally enforceable contract is agreement.
1. Corporate Law for Ontario Business (2012). Farah Jamal Karmali 2. Business Dictionary (2010). http://www.businessdictionary.com/definition/separate-legal-entity.html
...s of a partnership are the shared profit factor, which can cause a lot of animosity among the partners if things do not go as well or if there is an unequal amount of contribution among the partners. Additionally, there is both individual and joint liability with partnerships. This can often cause dissention between the partners (“SBA”). Essentially, the sole proprietorship is the best choice because the risks are minimal because it is solely one individual, who can make the best choices and decisions and deal with the consequences that arise accordingly.