Partnerships

Flashcards for vocabulary related to partnerships.

Partnership

A legal relationship arising from a contract between two or more persons where each person contributes to an enterprise carried on in common, with the object of making and sharing profits.

Contribution

The requirement that each partner must provide something of commercial value to the partnership, which can be corporeal, incorporeal, expertise, or labor.

Joint Benefit

The principle that the business must be conducted in the common interest of all partners, with each partner sharing in the profits of the business.

Profit Sharing

The essential element that a partnership must intend to make a profit, which will be divided amongst the partners.

Intention to Establish a Partnership

The clear intention of the parties to be partners, which is crucial for establishing a partnership, irrespective of whether they are aware of the legal consequences.

Partnership Fund

The assets of the partnership, including property contributed by partners, property acquired with partnership funds, profits, loans, and goodwill.

Ordinary Partnership

A partnership where all partners work together with the aim of making a profit, and are all liable for the debts of the partnership.

Extraordinary Partnership

A partnership where one or more of the partners are not liable to third parties for partnership debts, provided that they do not act as ordinary partners.

Silent Partnership

A type of extraordinary partnership where the partners agree to share the profits of a business carried on by one or some of the partners in their name alone, while the silent partners' names are not disclosed.

Partnership en Commandite

A partnership carried on in the name of one or some of the partners, while certain other partners contribute a fixed sum and are only liable to the extent of their agreed capital contribution.