Task10.5 Explain the termination of a partnership, and partners’ subsequent rights and liabilities.pdf

Task10-5 Explain the termination of a partnership, and partners’ subsequent rights and liabilities Explain the way in which various partnerships can be brought to an end Explain the way in which various partnerships can be brought to an end a) Expiry of a fixed period for which the partnership was formed b) Completion of the express purpose for which the partnership was formed c) Activity of the partnership becomes illegal d) Partner gives notice to leave (subject to PA 1890) e) Death or bankruptcy of a partner (subject to PA 1890) Lecture example 1 Required Which of the following is not a characteristic of a partnership? A. Partners can by mutual agreement withdraw capital if they wish. B. A partnership must be governed by a written partnership agreement. C. Partners jointly own partnership property. D. Partners are agents of the partnership. Lecture example 2 Required Which of the following rules does not apply to partnerships under the Partnership Act 1890? A. No partner is entitled to remuneration such as salary for acting in the partnership business. B. The partnership agreement may be varied with the consent of all the partners. C. Partners share profits in the ratio of the amounts of capital that they originally contributed to the firm. D. No interest is paid on capital. Summary Section Topic Summary A standard partnership is an informal trading relationship as defined by the PA 1890. Partners of a standard Standard partnership are agents of the firm and bind as such. The PA 1 partnersh 1890 confers rights upon the partners in the absence of an ip express partnership agreement . Partners have three statutory duties, to disclose, to account, and not to compete, in addition