- Partnership
A partnership may be suitable for certain stages of the development of a business and not in others.
There are many forms of business partnership, ranging from the informal to the more highly structured.
A partnership can come into being in the absence of a written agreement between the partners.
The following essentials must be present for a partnership:
Of particular importance to partners is the fact that the liability of partners for the liabilities of the partnership is joint and several. All the partners can be held liable.
What happens if the relationship between partners sours or if a partner is sequestrated or passes away?
You need to be alert to the implied features and obligations of partnerships and to the connection between partnerships and what may be referred to as a “joint venture".
There are many forms of business partnership, ranging from the informal to the more highly structured.
A partnership can come into being in the absence of a written agreement between the partners.
The following essentials must be present for a partnership:
- an undertaking by each partner to bring into the partnership money, labour or skill;
- in order to carry on a business for the joint benefit of all the parties;
- with the common objective of making profit.
Of particular importance to partners is the fact that the liability of partners for the liabilities of the partnership is joint and several. All the partners can be held liable.
What happens if the relationship between partners sours or if a partner is sequestrated or passes away?
You need to be alert to the implied features and obligations of partnerships and to the connection between partnerships and what may be referred to as a “joint venture".