No quod sanctus instructior ius, et intellegam interesset duo. Vix cu nibh gubergren dissentias. His velit veniam habemus ne. No doctus neglegentur vituperatoribus est, qui ad ipsum oratio. Ei duo dicant facilisi, qui at harum democritum consetetur.
A partnership is a relationship between at least two parties that carry on a business in common with an aim to make a profit.
Some key features of a partnership that you should consider:
Profits and losses are shared equally between the partners;
Partners bear unlimited liability for debts and obligations incurred by the partnership. It is true that limited partnerships (as documented in agreement) can allow some partners limited liability;
Each partner is an agent for the other(s). This means that they have the authority to bind them legally;
Partnerships are assumed to be infinite. Unless provided for, the partnership agreement will die when a partner does. For this reason, it is important that the relationship is documented;
A partnership implies a repetition of acts or business dealings, not a one-off deal, never to be repeated;
If you are thinking about operating as a partnership, it is vital that you formalize this through a formal agreement. Aside from the benefits discussed above, it can importantly save family relationships or friendships from breakdown in the event of a dispute.
If you have further questions, please contact frank@franklaw.com.au
