CONTRACT LAW REVIEW NOTES
PARTNERSHIP
When business is conducted in or through ownership is normally
owned by 2-20 persons Partnership Act defines partnership as:
The relation which subsists between persons carrying on a business in
common with a view to profit
FORMATION OF A PARTNERSHIP
The partnership Act does not prescribe rules for the formation of a
partnership, consequently, a partnership may be formed
a) Orally
b) Simply by the action of the persons concerned if they are active as
they were pertners
c) By simple agreement in writing
d) By a deed; i.e. an agreement under seal, signed by the persons
who agree to become partners
THE FIRMS NAME
Legally, the firm’s name is merely a convenient way of alluding to the
existing partners
Under the registration of Business Names Act, the registrar must be
furnished with the following particulars
a) The business name
b) The general nature of the business
c) The principle place of business
, d) The present Christian name and the surname and any former
name and surname of each partner and their residence
e) The nationality of each partner
f) Any other business occupation of the partner
g) The date of the commencement of business
RELATIONSHIP OF PARTNERS INTERSE
A) GENERAL PARTNER
, A partner who not only actively participate in the business who also
can be held liable for the total debts of the firms
B) LIMITED PARTNER
A Partner whose liability is limited to the amount of capital he has
invested in the firm. He takes no part in the management of the business
and if he does he will lose “limited liability” in respect of that transaction
C) ACTIVE PARTNER
A partner who take an active part in affairs of the partnership
D) SLEEPING PARTNER
This is a partner who does not take I any active part in the affairs of the
firm. He will have capital invested in the business but always remain in
the background himself (dormant partner)
ARTICLES OF PARTNERSHIP
Although a partnership need not be formed by written agreement it
is usual for “articles of partnership” to be drawn up signed by all
the partners
Such articles will govern the relationship of the partners and will
constitute the a contact between them
The article of partnership will generally contain the following 11 clauses
a) Nature of the business
b) Capital and property of the firm and the respective capital of each
partner
c) Sharing of profits and losses
d) Rules as to interest on capital or drawings
e) Probation for proper accounts and the auditing thereof
PARTNERSHIP
When business is conducted in or through ownership is normally
owned by 2-20 persons Partnership Act defines partnership as:
The relation which subsists between persons carrying on a business in
common with a view to profit
FORMATION OF A PARTNERSHIP
The partnership Act does not prescribe rules for the formation of a
partnership, consequently, a partnership may be formed
a) Orally
b) Simply by the action of the persons concerned if they are active as
they were pertners
c) By simple agreement in writing
d) By a deed; i.e. an agreement under seal, signed by the persons
who agree to become partners
THE FIRMS NAME
Legally, the firm’s name is merely a convenient way of alluding to the
existing partners
Under the registration of Business Names Act, the registrar must be
furnished with the following particulars
a) The business name
b) The general nature of the business
c) The principle place of business
, d) The present Christian name and the surname and any former
name and surname of each partner and their residence
e) The nationality of each partner
f) Any other business occupation of the partner
g) The date of the commencement of business
RELATIONSHIP OF PARTNERS INTERSE
A) GENERAL PARTNER
, A partner who not only actively participate in the business who also
can be held liable for the total debts of the firms
B) LIMITED PARTNER
A Partner whose liability is limited to the amount of capital he has
invested in the firm. He takes no part in the management of the business
and if he does he will lose “limited liability” in respect of that transaction
C) ACTIVE PARTNER
A partner who take an active part in affairs of the partnership
D) SLEEPING PARTNER
This is a partner who does not take I any active part in the affairs of the
firm. He will have capital invested in the business but always remain in
the background himself (dormant partner)
ARTICLES OF PARTNERSHIP
Although a partnership need not be formed by written agreement it
is usual for “articles of partnership” to be drawn up signed by all
the partners
Such articles will govern the relationship of the partners and will
constitute the a contact between them
The article of partnership will generally contain the following 11 clauses
a) Nature of the business
b) Capital and property of the firm and the respective capital of each
partner
c) Sharing of profits and losses
d) Rules as to interest on capital or drawings
e) Probation for proper accounts and the auditing thereof
