Define partnership

Examples of partner in a Sentence Noun His partner, his wife of 20 years, was shocked to hear about his accident. They are partners in the real estate business. Singapore's most important trading partner is Indonesia.

Define partnership

DictionaryThesaurusMedicalFinancialEncyclopedia. Partnership An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. Early English mercantile courts recognized a business form known as the societas.

Partnership - Wikipedia

As the regular English courts gradually recognized the societas, the business form eventually developed into the common-law partnership. The authors of the initial UPA debated whether in theory a partnership should be treated as an aggregate of individual partners or as a corporate-like entity separate from its partners.

Define partnership

The UPA generally opted for the aggregate theory in which individual partners "an association" comprised the partnership.

Under an aggregate theory, partners are co-owners of the business; the partnership is not a distinct legal entity. This led to the creation of a new property interest known as a "tenancy in partnership," a legal construct by which each partner co-owned partnership property.

An aggregate approach nevertheless led to confusion as to whether a partnership could be sued or whether it could sue on its own behalf. Some courts took a technical approach to the aggregate theory and Define partnership not allow a partnership to sue on its own behalf.

In addition, some courts would not allow a suit to go forward against a partnership unless the claimant named each partner in the complaint or added each partner as an "indispensable party.

The RUPA nevertheless treats the partnership in some instances as an aggregate of co-owners; for example, it retains the joint liability of partners for partnership obligations.

As a practical matter, therefore, the present-day partnership has both aggregate and entity attributes. The partnership, for instance, is considered an association of co-owners for tax purposes, and each co-owner is taxed on his or her proportional share of the partnership profits.

Formation The formation of a partnership requires a voluntary "association" of persons who "coown" the business and intend to conduct the business for profit. 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. 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 Annuitysuch transactions are considered "protected relationships" and do not lead to a legal inference that a partnership exists.

Relationship of Partners to Each Other Each partner has a right to share in the profits of the partnership. Unless the partnership agreement states otherwise, partners share profits equally. Moreover, partners must contribute equally to partnership losses unless a partnership agreement provides for another arrangement.

In some jurisdictions a partner is entitled to the return of her or his capital contributions. In jurisdictions that have adopted the RUPA, however, the partner is not entitled to such a return.

In addition to sharing in the profits, each partner also has a right to participate equally in the management of the partnership. In many partnerships a majority vote resolves disputes relating to management of the partnership.

Each partner owes a fiduciary duty to the partnership and to copartners.

Partnership

This duty requires that a partner deal with copartners in Good Faithand it also requires a partner to account to copartners for any benefit that he or she receives while engaged in partnership business.

If a partner generates profits for the part-nership, for example, that partner must hold the profits as a trustee for the partnership. Each partner also has a duty of loyalty to the partnership. Relationship of Partners to Third Persons A partner is an agent of the partnership.

When a partner has the apparent or actual authority and acts on behalf of the business, the partner binds the partnership and each of the partners for the resulting obligations. A partner may only bind the partnership, however, if the partner has the authority to do so and undertakes transactions while conducting the usual partnership business.

Liability Generally, each partner is jointly liable with the partnership for the obligations of the partnership. In many states each partner is jointly and severally liable for the wrongful acts or omissions of a copartner.

Although a partner may be sued individually for all the damages associated with a wrongful act, partnership agreements generally provide for indemnification of the partner for the portion of damages in excess of her or his own proportional share.May 04,  · A partnership is the relationship existing between two or more persons who join to carry on a trade or business.

Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership is a company that is owned by two or more people, who share in the risks and rewards of the business. general partnership, limited partnership Collins English Dictionary.

Partnership. An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally.

The legal definition of a partnershi. A partnership is a formal arrangement in which two or more parties cooperate to manage and operate a business.

Various partnership arrangements are possible in which all partners might share. Limited liability limited partnership (LLLP) S corporation; Delaware corporation / statutory trust; Massachusetts business trust; Nevada corporation; Others;.

A partnership is a formal arrangement in which two or more parties cooperate to manage and operate a business. Various partnership arrangements are possible in which all partners might share.

Partnership - Wikipedia