Partnership Law Concepts (MT)

These flashcards cover essential vocabulary and concepts related to partnership law based on lecture notes.

Partnership

An association of two or more persons to carry on as co-owners a business for profit.

Capitalist Partner

A partner who contributes capital to the partnership but may not participate in the management or operations.

Limited Partner

A partner who has limited liability and does not participate in the management of the partnership.

General Partnership

A partnership in which all partners share equally in profits, losses, and management responsibilities.

Industrial Partner

A partner who contributes labor or expertise instead of capital.

Subpartnership Agreement

An agreement where a partner enters into a partnership with an external party regarding their share in the original partnership.

Legal Personality

The capacity of a partnership to have rights, duties, and obligations separate from its partners.

Dissolution of Partnership

The process of terminating a partnership and winding up its affairs.

Juridical Personality

A legal entity recognized by law as having rights and responsibilities.

Liability

The legal responsibility of partners for the debts and obligations of the partnership.

Authority of Partners

The power of partners to act on behalf of the partnership and bind it in legal transactions.

Withdrawal

The act of a partner leaving the partnership, which may affect the partnership's continuity.

Stipulation

A specific provision or condition agreed upon by the partners regarding the partnership.

Equity in Partnership

A partner's share or interest in the partnership's profits and assets.

Dissolution Due to Insanity

The termination of a partnership as a result of a partner being declared legally insane.

Charging Order

A court order granting a creditor the right to receive distributions owed to a partner in a partnership.

Preferred Creditor

A creditor that has a higher priority over others in claims against the partnership’s assets.

Transfer of Interest

The process of a partner selling or assigning their partnership share to another party.

Winding-up of Partnership Affairs

The process of settling the financial obligations of a partnership after dissolution.

Estoppel

A legal principle that prevents a party from arguing something contrary to a claim they previously made.

Partnership

An association of two or more persons to carry on a business for profit.

Capitalist Partner

A partner who contributes capital to the partnership and generally does not manage the business.

Subpartnership Agreement

An agreement for an arrangement where a partner may share their interest in the partnership with another party.

Dissolution

The process of ending a partnership, which may occur due to various reasons such as withdrawal of a partner, death, or agreement among partners.

Limited Partner

A partner who has limited liability and typically does not participate in the management of the partnership.

General Partnership vs Limited Partnership

In a general partnership, all partners share management and liabilities; in a limited partnership, some partners are limited in liability and have no management authority.

Juridical Personality

The separate legal identity of a partnership, distinguishing it from its partners.

Solidary Liability

The legal doctrine that allows a creditor to collect the entire debt from any individual partner or from the partnership as a whole.

Authority of Partners

The capacity of a partner to act on behalf of the partnership and bind the partnership through agreements.

Withdrawal of a Partner

A partner's decision to leave the partnership, which can result in the dissolution of the partnership depending on the partnership agreement.

Creditor Preference

The legal principle that determines the order of payment to creditors in the event of liquidation or dissolution of the partnership.

Industrial Partner

A partner who contributes labor or expertise to the partnership but does not contribute capital.

Termination of Authority

The ending of a partner's ability to act on behalf of the partnership, often occurring upon dissolution.

Charging Order

A court order allowing a creditor to attach a partner's share of profits to satisfy a debt.

Right to Partnership Property

A partner's interest in shared property owned by the partnership, which can differ based on individual agreements.