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Partnership by Mind Map: Partnership

1. Limited Liability Companies

1.1. General

1.1.1. Gen

1.1.1.1. Taxed like p’ships + owners have liability of shareholders of corp’

1.1.2. Formation

1.1.2.1. Filing with sec of state entity + name/addresses of members & office & agent

1.1.3. Liability

1.1.3.1. Members are not personally liable

1.1.4. Share of Profits/Losses

1.1.4.1. Equal to contributions

1.1.5. Transfer of Interest

1.1.5.1. Assign right to receive Profits but not management rights

1.1.6. Dissolution

1.1.6.1. Dissociation of LLC member generally causes dissolution

2. Foreign Corporations

2.1. General

3. Partnership Property

3.1. General

3.1.1. Partnership Capital

3.1.1.1. Partners contributions

3.1.2. Partnership Property

3.1.2.1. Everything opened by p’ship

3.2. Titled Property

3.2.1. Presumed partnership Property

3.2.1.1. Purchased with p’ship funds

3.2.2. Presumed Separate Property

3.2.2.1. Property held in a partners name

3.2.2.2. Instrument transferring title

3.2.2.2.1. No indication of partners p’ship capacity

3.2.2.2.2. No indication of partners p’ship capacity

3.2.2.2.3. Doesn’t mention p’ship

3.2.2.2.4. P’ship funds weren’t used

3.3. Untitled Property

3.3.1. Acquired with p’ship funds

3.3.2. Used to further p’ship

3.3.3. Entered into p’ship books

3.3.4. Close relationship Property & Business

3.3.5. Property improved or maintained by p’ship

3.4. Rights of Partner to Partnership Property

3.4.1. No transferable Interest

4. Partners

4.1. Rights

4.1.1. General

4.1.1.1. Management, Inspection, Access to Accounts, to Sue,

4.1.1.2. Dissolution

4.1.1.3. Indemnification + contribution

4.1.1.4. Renumeration

4.1.2. Partners Interest in Partnership

4.1.2.1. Treaties as personal property that is transferable and attachable w/o dissolution

4.2. Limitations

4.2.1. Fiduciary Duties

4.2.1.1. Loyalty + Care

4.2.2. Breach of Duties

4.2.2.1. Resulting in Profit

4.2.2.1.1. Trustee capacity

4.3. Relations to 3rd Parties

4.3.1. Apparent Authority

4.3.1.1. Knowledge/Notification

4.3.1.1.1. Won’t be bound

4.3.1.2. Business of the Kind

4.3.1.3. Transfer of Partnership Property

4.3.1.3.1. Depends on if p’ship Interest is indicated on the instrument and if value is given

4.3.2. Actual Authority

4.3.3. Statement of Authority

4.3.3.1. An express grant or limitation for a partner to enter into transactions

4.3.4. Liability of Partners

4.3.4.1. Contract

4.3.4.2. Tort

4.3.4.3. Criminal

4.3.4.4. Partnership Obligations

4.3.4.4.1. Equally and personally liable

4.3.4.5. Limitations on Liability

4.3.4.5.1. Incoming partners not liable

4.3.4.5.2. Outgoing partners are

5. Dissociation & Dissolution

5.1. Dissociation

5.1.1. General

5.1.1.1. Withdrawal, expulsion, bankruptcy

5.1.1.1.1. No dissolution - majority must agree to continue p’ship

5.1.2. Events Causing Dissociation

5.1.2.1. Death + incapacity + bankruptcy + Notice + expulsion (unanimous) + receivership

5.1.3. Wrongful and Nonwrongful Dissociations

5.1.4. Effects of Dissociation

5.1.4.1. No management rights but must be bought out $$

5.1.4.2. Remain liable for obligations incurred

5.1.4.2.1. Retains apparent Authority

5.1.4.2.2. Buyout date + price

5.2. Dissolution

5.2.1. Event Causing

5.2.1.1. P’ship term expires

5.2.1.2. Agreement

5.2.1.3. Event occurs = agreement states winding up

5.2.1.4. Bankruptcy + death + expulsion

5.2.2. Liquidation of assets

5.2.3. Effects of Dissolution

5.2.3.1. Bound by partners acts in winding up process

5.2.3.2. Notice of dissolution

5.2.3.2.1. 90 days = constructive Notice

5.3. Distribution of Assets

5.3.1. Liabilities too creditors then to partners by share of contribution

6. Nature of Partnership

6.1. Definition

6.1.1. Association of 2 or more, carrying on as co-owners of a business for profit

6.1.1.1. Creates an entity

6.2. Governing Law

6.2.1. Revised Uniform Partnership Act

6.3. Legal Entity

6.3.1. Distinct from its partners

7. Formation

7.1. Agreement

7.1.1. Formal agreement not required - intent sufficient

7.2. Consent

7.2.1. Express or Implied of all partners

7.3. Capacity

7.4. Legal Purpose

7.4.1. Illegality will void p’ship

7.5. Partnership by Estoppel

7.5.1. A court may View the conduct of the D as that consisting of a p’ship

7.6. Proof of Partnership Existence

7.6.1. Sufficient Proof!

8. Professional Corporations

8.1. General

9. Different Types

9.1. General Partnership

9.1.1. Partners share equal right and responsibilities in management

9.1.2. Any partner can bind entity

9.2. Limited Liability Partnership

9.2.1. General

9.2.1.1. Majority of states recognise

9.2.1.2. Protects a party from personal liability for negligent acts committed by other partners/employees

9.2.1.3. Advantage: Not individually liable for LLP’s obligations

9.2.2. Formation

9.2.2.1. Voting

9.2.2.1.1. P’ship agreement rules

9.2.2.2. Filing

9.2.2.2.1. A statement of qualification with Sec. of State + name + address

9.2.2.3. Name

9.2.2.3.1. Contain LLP etc

9.2.3. Liability

9.2.3.1. Remains liable for her own wrongful acts + malpractice

9.3. Limited Partnership

9.3.1. General

9.3.1.1. Same as general p’ship but filing of certificate required (LLP)

9.3.1.2. General and limited partners

9.3.1.2.1. General partners personally liable for p’ship obligations

9.3.1.2.2. Limited partners not liable beyond capital contribution

9.3.2. Formation

9.3.2.1. Certification

9.3.2.1.1. Of limited partnership signed by all G & L partners

9.3.2.2. Records Office

9.3.2.3. Agent

9.3.2.3.1. For service of process

9.3.2.4. Name

9.3.2.4.1. Must contain Limited Partnership

9.3.2.5. Additional Partners

9.3.2.5.1. Governed by p’ship agreement

9.3.2.5.2. If silent = consent of all partners

9.3.2.6. Nature of contributions

9.3.2.6.1. Cash, Property, services rendered, promises

9.3.2.6.2. No right to distribution w/o contribution

9.3.3. Partners

9.3.3.1. Liability

9.3.3.1.1. General Partner

9.3.3.1.2. Limited partner

9.3.3.2. Duties

9.3.3.2.1. General

9.3.3.2.2. Limited

9.3.3.3. Rights

9.3.3.3.1. General

9.3.3.3.2. Limited

9.3.3.3.3. Both

9.3.4. Dissociation

9.3.4.1. Effect on

9.3.4.1.1. Limited

9.3.4.1.2. General

9.3.5. Dissolution and Distribution

9.3.5.1. Dissolution

9.3.5.1.1. Court may order if impracticable or failure to pay fees or file annual report

9.3.5.1.2. Or by other means similar to Partnership

9.3.5.2. Winding Up

9.3.5.2.1. Liabilities + distribute assets

9.3.5.3. Power to Bind post dissolution

9.3.5.3.1. G’s acts appropriate to winding up can bind

9.3.5.4. Distribution of assets

9.3.5.4.1. Insufficient assets

9.3.6. Conversion and Merger

9.3.6.1. Consent of all parties + filing with sec of state