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Partnerships In The Realm Of Term Paper

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A partnership, once formed, acquires juridical personality separate and distinct from that of each of the partners. Therefore, a partnership may enter into binding contracts in its own name. Money, property and industry contributed into a common fund, whether invested at the time of formation or subsequent thereof becomes property of the partnership. Each partner shall be deemed co-owners of such property and shall have equal rights. Each partner shall also have a propriety interest in the partnership which represents their share in the earnings and in equity..

The basic characteristic of a partnership formation is that it is based on mutual trust and agency as between partners. Each partner has an equal right to act for the partnership and enter into contracts as long as it not prejudicial and within the scope of business operations. A partnership may be created for a fixed term or duration. If none is fixed, the partnership shall continue to be in such form so long as the partners do not express any will to terminate or disassociate themselves with the partnership. The theory is that no person can be compelled to continue his association or be a partner...

Consequently, any change in the relationship of the partners brought about by death, withdrawal, bankruptcy or incapacity causes the dissolution of the partnership, its liquidation and eventually its termination.
Each partner is held personally liable for all the obligations of the partnership. In case of unsatisfied debts, each partner's business and personal properties aside from those contributed may be used in settlement of the partnership liabilities. There is, however, a special type of partnership called "limited partnership" allowing its partners to limit their personal liability only to the extent of their capital contributions.

Bibliography

GENERAL PARTNERSHIPS, Wikipedia, the free Encyclopedia (2007). Retrieved April 21, 2007 from http://en.wikipedia.org/wiki/General_partnership

PARTNERSHIPS, Internal Revenue Service, U.S. Dept. Of Treasury. Retrieved April 21, 2007 from http://www.irs.gov/businesses/small/article/0,id=98214,00.html

THE GENERAL PARTNERSHIP, Quick MBA, Law and Business (1999-2007). Retrieved April 21, 2007 from http://www.quickmba.com/law/partnership/general

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Bibliography

GENERAL PARTNERSHIPS, Wikipedia, the free Encyclopedia (2007). Retrieved April 21, 2007 from http://en.wikipedia.org/wiki/General_partnership

PARTNERSHIPS, Internal Revenue Service, U.S. Dept. Of Treasury. Retrieved April 21, 2007 from http://www.irs.gov/businesses/small/article/0,id=98214,00.html

THE GENERAL PARTNERSHIP, Quick MBA, Law and Business (1999-2007). Retrieved April 21, 2007 from http://www.quickmba.com/law/partnership/general
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