Partnership Analysis
2
Issue: The court must determine whether Ted has a partnership with Bob, Sally or Luke? Rules: A partnership is a juridical person, distinct from its partners, created by a contract between two or more persons to combine their efforts or resources in determined proportions and to collaborate at mutual risk for their common profit or commercial benefit. Under Louisiana law a contract could be either written or oral. Additionally, jurisprudence has held that a contract may be form inadvertently by looking at the facts and circumstances surrounding the formation of the relationship at issue. According to Hassiepen , the formalities of a written partnership agreement are unnecessary to prove the existence of a partnership. Thus setting out that a partnership arises when 1. Parties join together to carry on a venture for their common benefit 2. Each party contributes property or services to the venture, and 3. Each party has a community of interest in the profits of the venture In order to establish the existence of a partnership without a writing, there must be a showing that all the parties intended such a relationship Moreover, the Porter court held that in order to establish the existence of a partnership without a written agreement, the plaintiff has the burden of proving 1. The parties must have mutually consented to form a partnership and participate in the profits which may accrue from the property, skill, or industry, furnished to the business in determined proportion by them 2. All parties must share in the losses as well as the profits of the venture 3. The property or stock of the enterprise must form a community of goods in which each party has a propriety interest Also, according to Simpson the court listed the following factors to distinguish a partner from a position as employee: 1. Participation in profits and losses 2. Exposure to liability
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Transcript of Partnership Analysis
Issue: The court must determine whether Ted has a partnership with Bob, Sally or Luke?
Rules:
A partnership is a juridical person, distinct from its partners, created by a contract between two or more persons to combine their efforts or resources in determined proportions and to collaborate at mutual risk for their common profit or commercial benefit.
Under Louisiana law a contract could be either written or oral. Additionally, jurisprudence has held that a contract may be form inadvertently by looking at the facts and circumstances surrounding the formation of the relationship at issue.
According to Hassiepen, the formalities of a written partnership agreement are unnecessary to prove the existence of a partnership. Thus setting out that a partnership arises when
1. Parties join together to carry on a venture for their common benefit
2. Each party contributes property or services to the venture, and
3. Each party has a community of interest in the profits of the venture
In order to establish the existence of a partnership without a writing, there must be a showing that all the parties intended such a relationship
Moreover, the Porter court held that in order to establish the existence of a partnership without a written agreement, the plaintiff has the burden of proving
1. The parties must have mutually consented to form a partnership and participate in the profits which may accrue from the property, skill, or industry, furnished to the business in determined proportion by them
2. All parties must share in the losses as well as the profits of the venture
3. The property or stock of the enterprise must form a community of goods in which each party has a propriety interest
Also, according to Simpson the court listed the following factors to distinguish a partner from a position as employee:
1. Participation in profits and losses
2. Exposure to liability
3. Investment in the firm
4. Partial ownership of firm assets
5. Voting rights
6. Position under the partnership agreement
7. Position under partnership law.
Analysis:
