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Flashcards in Partnerships & LLCs Deck (6)
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1
Q

Can a profit sharing relationship be characterized as a partnership even though the parties expressly stated they were not partners?

A

Yes.

there doesn’t have to be a mutual intention to be partners.

Inadvertent partnerships typically result from an effort to create an independent contractor or creditor relationship in order to avoid partnership liability.

2
Q

General Partnership Liability

A
  • each partner is personally and individually liable for the entire amount of the partnership’s obligations.
3
Q

Can a minor enter into a partnership?

A
  • anyone who is capable of entering into a binding contract can enter into a partnership
  • a minor lacks capacity to be a partner and is not personally liable for partnership debts.
  • minor IS liable though to the extent of his capital contributions
4
Q

RUPA?

A

The Revised Uniform Partnership Act – has been adopted by Florida.

5
Q

Under the RUPA, what creates a rebuttable presumption that a person is a partner in the business?

A

Sharing of profits.

No such inference is drawn if the profits constitute wages, rent, interest or other payments deemed exceptions to the general rule.

6
Q

What happens if a person consents to being held out as a partner, even if he is not?

A

Under the RUPA, he is liable to any third party who enters into a transaction in reliance on that representation.