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Partnership • Introduction
PT#000
Legal Definition
Similar to Agency Law, Partnership Law addresses the question of "to what extent can the law hold someone liable for the actions of others?" More specifically, the actions of others they have agreed to be in business with. Generally, exams test partnership law by either (a) sneakily creating liability between two people who aren't explicitly business partners, but technically meet the requirements for a general partnership, or (b) explicitly calling out a partnership between people, but then testing your knowledge of whether or not certain formalities are met.
Overall, if you see a fact pattern or question involving two or more people who are working together towards some sort of business interests, you likely have a Partnership Law issue to deal with and your next question should be characterizing the specific type of partnership that you're dealing with so you'll know what sort of rules are in play. For example, as you'll learn in the cards in this section, if you are dealing with a general partnership, then all the partners are equally liable for creditors but, in contrast, under a limited partnership, some partners are less liable than others.
Overall, if you see a fact pattern or question involving two or more people who are working together towards some sort of business interests, you likely have a Partnership Law issue to deal with and your next question should be characterizing the specific type of partnership that you're dealing with so you'll know what sort of rules are in play. For example, as you'll learn in the cards in this section, if you are dealing with a general partnership, then all the partners are equally liable for creditors but, in contrast, under a limited partnership, some partners are less liable than others.
