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    Partnership

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    ฅ'ω'ฅ Nightcore Plasma ฅ'ω'ฅ
    Partnership is an association of two or more persons who contribute money, property, or skills to a common fund with the intention of sharing profits. Key elements of a partnership include a contract between partners, a lawful purpose, contributions to a common fund, an intention to share profits, and mutual agency where each partner's actions bind the partnership. Partnerships are formed through voluntary association as partners are personally liable for partnership debts and select who they join with in the business.

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    Partnership

    Uploaded by

    ฅ'ω'ฅ Nightcore Plasma ฅ'ω'ฅ
    19 views5 pages
    Partnership is an association of two or more persons who contribute money, property, or skills to a common fund with the intention of sharing profits. Key elements of a partnership include a contract between partners, a lawful purpose, contributions to a common fund, an intention to share profits, and mutual agency where each partner's actions bind the partnership. Partnerships are formed through voluntary association as partners are personally liable for partnership debts and select who they join with in the business.

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    Partnership is an association of two or more persons who contribute money, property, or skills to a common fund with the intention of sharing profits. Key elements of a partnership include a contract between partners, a lawful purpose, contributions to a common fund, an intention to share profits, and mutual agency where each partner's actions bind the partnership. Partnerships are formed through voluntary association as partners are personally liable for partnership debts and select who they join with in the business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views5 pages

    Partnership

    Uploaded by

    ฅ'ω'ฅ Nightcore Plasma ฅ'ω'ฅ
    Partnership is an association of two or more persons who contribute money, property, or skills to a common fund with the intention of sharing profits. Key elements of a partnership include a contract between partners, a lawful purpose, contributions to a common fund, an intention to share profits, and mutual agency where each partner's actions bind the partnership. Partnerships are formed through voluntary association as partners are personally liable for partnership debts and select who they join with in the business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    Partnership

    Partnership is an association of two or more persons who have


    agreed to contribute money, property, or industry to a common fund
    with the intention of dividing the profits among themselves.

    In a partnership, there is another concept that equally applies from


    the business entity concept pertaining to the relationship of the
    partners to the partnership. It is the aggregate concept, which views the
    partnership as a collection of rights and responsibilities, of the individual
    partners, inasmuch as the individual partners are jointly liable for all the
    debts and obligations of the partnership.
    Nature of a Partnership
    A partnership is easier to form than a corporation. It allows the
    pooling of resources for some common purpose(s). Partnerships have
    been employed not only for small operations, but also for large-scale
    operations. It may be a small firm selling goods or services at a single
    location, or it may be a larger enterprise selling goods or services at
    different locations.
    Partnerships may be composed of two partners only or dozens of
    partners. It is contractual in nature because it is formed through a
    contract between or among the partners. The partnership can be
    formed by either an oral contract/agreement or by a written
    contract/agreement. A written contract is not required for a
    partnership. All that is needed is that the partners agreed to form the
    partnership and are amenable to the terms of the agreement.
    ELEMENTS OF FINANCE
    Essential Requisites of a Partnership
    1. a contract of partnership which may be oral or written, expressed or implied, subject to the rules contained
    in Articles 1771 to 1773 of the New Civil Code,
    2. two or more persons who have the legal capacity to enter into the contract of partnership;
    3. valuable contribution to a common fund which may consist of money, property, or industry;
    4. an intention to divide the profits between or among the partners; and
    5. lawful purpose(s).
    Characteristics of a Partnership
    1. mutual agency; 6. division of profit; and
    2. voluntary association; 7. co-ownership of contributed assets.
    3. based on contract;
    4. limited life;
    5. unlimited liability;
    Mutual Agency
    Every partner is an agent of the partnership for the purpose of its
    business. The act of every partner for carrying on in the usual way the
    business of the partnership of which he is a partner binds the
    partnership. This means that the acts of each partner, provided that
    they are within the scope of the business of the partnership, bind the
    partnership or make the partnership liable to third parties.
    Voluntary Association
    Partnerships are voluntary associations in so far as no person can be
    forced against his will to become a partner to a partnership. This is
    because a partner is responsible for the business acts of his partners
    when the acts are within the scope of the business of the partnership;
    also, a general partner is unlimitedly liable for the partnership debts.
    Consequently, it is only fair that a person be permitted to select the
    people he wishes to join with in a partnership. Trust and confidence are
    the key elements in a contract of partnership.
    Other than the provision of the New Civil Code, the Uniform
    Partnership Act of 1994 contains legal guidelines relevant to
    partnerships.

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