Chapter 19 - Partnership and joint venture law. At the end of this chapter you should understand: the definition of the term ‘partnership’, the tests used to decide if partnership exists, how a partnership is created, the matters that should be included in a partnership agreement,. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 19- Copyright © 2000 McGraw-Hill Australia Partnership and joint venture law Chapter 19 Partnership A partnership is the carrying on of a business in common, with a view of making a profit. 19- Copyright © 2000 McGraw-Hill Australia Definitions Carrying on a business continuity or repetition of action to be carried on in the future In common acting on behalf of each other View to a profit distribution of profits results 19- Copyright © 2000 McGraw-Hill Australia Tests for determining the existence of a partnership Common Law Rules - Intention - Agency - Sharing of profits and losses Statutory Rules - Joint ownership of property - Sharing of gross returns - Receiving a share of the profits 19- Copyright © 2000 McGraw-Hill Australia Partnership agreement Can be verbal, written or by conduct. A written partnership agreement is desirable as disputes are easier to resolve. Overrides the provisions of the relevant Partnership Act. 19- Copyright © 2000 McGraw-Hill Australia Contents of a standard Partnership Agreement Names and addresses of partners Name of firm Place or places from which business will operate Duration of the partnership Capital contribution of each partner Interest of each partner Share ratio of profits and losses Whether salaries will be paid to partners Management duties of each partner Details of keeping accounts Limitations in the authority of partners Appointment of bankers Cheque signing Retirement of partners Admittance of partners Dissolution of partners Setting up competing business Resolving disputes Valuing of shares for retiring/deceased partners 19- Copyright © 2000 McGraw-Hill Australia Limitations for partners Capacity Minors - not liable for partnership debts Lunatics - limited if lunacy known Bankrupts - must disclose bankruptcy 19- Copyright © 2000 McGraw-Hill Australia Relationship between partners Partners are in | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 19- Copyright © 2000 McGraw-Hill Australia Partnership and joint venture law Chapter 19 Partnership A partnership is the carrying on of a business in common, with a view of making a profit. 19- Copyright © 2000 McGraw-Hill Australia Definitions Carrying on a business continuity or repetition of action to be carried on in the future In common acting on behalf of each other View to a profit distribution of profits results 19- Copyright © 2000 McGraw-Hill Australia Tests for determining the existence of a partnership Common Law Rules - Intention - Agency - Sharing of profits and losses Statutory Rules - Joint ownership of property - Sharing of gross returns - Receiving a share of the profits 19- Copyright © 2000 McGraw-Hill Australia Partnership agreement Can be verbal, written or by conduct. A written partnership agreement is desirable as disputes are easier to resolve. Overrides .
