acc 480 ch.27

agency concepts and partnership law

two or more persons are required to form a partnership, like an agency relationship, common law agency concepts apply, bound by fiduciary ties, & partnership law based on voluntary contract between person

uniform partnership act (upa)

governs partnerships in the absence of an express agreement & partners free to establish rules free from upa

essential elements of a partnerships

1. sharing of profits and losses

2. business joint ownership

3. equal right to be involved in business management

courts won’t presume partnership if:

1. debt by installments/loan interest

2. wages of employees/independent contractors payment for service

3. rent to a landlord

4. annually to surviving spouse/representative of deceased partner

5. sale of goodwill of business/property

joint property ownership

parties’ intentions are key in determining joint ownership,
every partner in a partnership has an equal say in management, each partner has a single vote in management decisions