Term
| Partnership interest consists of |
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Definition
| Right to share profits, share distributed surplus, share of proceeds after distribution |
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Term
| Can a partnership interest be assigned? |
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Definition
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Term
| Can a partner transfer his interest in partnership property? |
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Definition
| A partner's interest as tenant in partnership is nontransferable. |
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Term
| Can a partner's right to participate in management be assigned? |
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Definition
| A partner's right to participate in management of the partnership is not assignable. |
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Term
| May a partner sue the partnership on a claim that arose before he acquired his partnership interest? |
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Definition
| The general rule is that a partner may not sue the partnership. Sole remedy is an action for accounting. (See exception.) |
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Term
| Exception to sole remedy of partner against partnership. |
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Definition
| Partner may sue partnership over fully completed business transaction conducted before person became a partner. |
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Term
| Who may be served in an action against a partnership? |
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Definition
| The partnership, and/or each partner personally. |
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Term
| What is the liability of a partner for previous debts of the partnership? |
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Definition
| The maximum liability of a new partner is the total of his capital contributions. He is personally liable for debts incurred after his association. |
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Term
| May a partner agree to bear previous debts of the partnership? |
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Definition
| Yes, but must do so affirmatively. |
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Term
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Definition
| A master will be liable for the tortious acts of his servant if the tort occurs within the scope of employment |
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Term
| When is intentional tortious conduct within the scope of the employee's occupation? |
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Definition
| When force is authorized beforehand or when the employee furthers the employer's business by his acts. |
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Term
| Once a partnership dissolves, a partner may not bind the partnership to new business, he may only |
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Definition
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Term
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Definition
| Acting for partnership purposes, in furtherance of a valid partnership business |
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Term
| Notice of death exception |
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Definition
| A partnership does not dissolve until partners are given notice of a partner's death. |
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Term
| A third party may not rely on representations as to agency from an agent without prior course of dealing and without seeking acknowledgment from the principal. |
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Definition
| If the third party does so and the agent lacks authority, the third party may recover only from the agent. |
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Term
| Potential grounds for automatic dissolution of the partnership |
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Definition
Bankruptcy of any partner.
Partner becomes incapacitated (with court order).
Court may issue decree of dissolution if partnership can only be carried on at a loss. |
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