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Questions and Answers
A partner's interest in the partnership includes their share of the profits and surplus.
A partner's interest in the partnership includes their share of the profits and surplus.
True
A partner's right in specific partnership property is subject to legal support under article 291.
A partner's right in specific partnership property is subject to legal support under article 291.
False
A partner is co-owner of specific partnership property with their partners.
A partner is co-owner of specific partnership property with their partners.
True
A deceased partner can claim rights under homestead or exemption laws.
A deceased partner can claim rights under homestead or exemption laws.
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A partner has no right to participate in the management of the partnership.
A partner has no right to participate in the management of the partnership.
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A partner can convey title to partnership property without approval from all partners.
A partner can convey title to partnership property without approval from all partners.
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If title to real property is in the name of the partnership, a conveyance executed by any single partner passes all rights to that property.
If title to real property is in the name of the partnership, a conveyance executed by any single partner passes all rights to that property.
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A partner's admission or representation regarding partnership affairs is considered evidence against the partnership.
A partner's admission or representation regarding partnership affairs is considered evidence against the partnership.
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The partnership cannot recover property sold by a partner who exceeded his authority if the grantee was unaware of this.
The partnership cannot recover property sold by a partner who exceeded his authority if the grantee was unaware of this.
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Partnership property can be assigned in trust for creditors by one partner without consent from others.
Partnership property can be assigned in trust for creditors by one partner without consent from others.
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Every partner in a partnership is an agent of promise to pay the debts of the partnership.
Every partner in a partnership is an agent of promise to pay the debts of the partnership.
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A partner can bind the partnership to any act without restrictions.
A partner can bind the partnership to any act without restrictions.
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A partner's act does not bind the partnership if it contradicts a restriction on authority and the other party is unaware of this restriction.
A partner's act does not bind the partnership if it contradicts a restriction on authority and the other party is unaware of this restriction.
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Executing an instrument in the partnership name can bind the partnership if it is for carrying on the usual business.
Executing an instrument in the partnership name can bind the partnership if it is for carrying on the usual business.
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If a partner lacks authority for a specific action, the partnership is still bound if the other party knows about the lack of authority.
If a partner lacks authority for a specific action, the partnership is still bound if the other party knows about the lack of authority.
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Partners can confess a judgment on behalf of the partnership without other partners' consent.
Partners can confess a judgment on behalf of the partnership without other partners' consent.
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A partner may dispose of the goodwill of the business without needing authorization from others.
A partner may dispose of the goodwill of the business without needing authorization from others.
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An act of a partner is binding on the partnership as long as it appears to be part of the usual business.
An act of a partner is binding on the partnership as long as it appears to be part of the usual business.
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A partner is liable for obligations of the partnership to the same extent as if they were a partner in fact.
A partner is liable for obligations of the partnership to the same extent as if they were a partner in fact.
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A person only becomes a partner after being formally admitted to the partnership.
A person only becomes a partner after being formally admitted to the partnership.
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Consent from all partners is required for a partnership act to result from a representation.
Consent from all partners is required for a partnership act to result from a representation.
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A partner acting on behalf of the partnership has no authority to bind the partnership.
A partner acting on behalf of the partnership has no authority to bind the partnership.
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Representation made by someone who is not an actual partner cannot create obligations for the partnership.
Representation made by someone who is not an actual partner cannot create obligations for the partnership.
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A partnership is liable for loss or injury caused by a partner acting within the scope of his authority.
A partnership is liable for loss or injury caused by a partner acting within the scope of his authority.
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A partner is not held liable if no partnership liability results from their actions.
A partner is not held liable if no partnership liability results from their actions.
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Misappropriation of money or property by one partner does not affect the partnership's liability.
Misappropriation of money or property by one partner does not affect the partnership's liability.
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A partner has apparent authority to receive money or property from a third person on behalf of the partnership.
A partner has apparent authority to receive money or property from a third person on behalf of the partnership.
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If a representation is made that a person is a partner, that person bears the same liabilities as an actual partner.
If a representation is made that a person is a partner, that person bears the same liabilities as an actual partner.
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Partners are not responsible for misapplication of funds if they didn't personally handle them.
Partners are not responsible for misapplication of funds if they didn't personally handle them.
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Each partner in a business can act independently without any limitations on authority.
Each partner in a business can act independently without any limitations on authority.
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A partnership must make good the loss when a partner misapplies money received from a third person.
A partnership must make good the loss when a partner misapplies money received from a third person.
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Study Notes
Partner’s Property Rights
- A partner has rights in specific partnership property, an interest in the business, and the right to participate in partnership management.
- A partner’s specific partnership property is not subject to legal support claims.
- A partner's share of profits and surplus represents their interest in the partnership.
Partner as Agent of Partnership
- Each partner acts as an agent of the partnership.
- Every partner's actions in the usual course of business bind the partnership.
- If a partner exceeds their authority and the other party knows about the restriction, the partnership is not bound.
Partner’s Authority
- Partners without express authorization from other partners cannot:
- Assign partnership property to creditors.
- Dispose of business goodwill.
- Take actions that hinder ordinary business operations.
- Confess judgment.
- Compromise partnership claims or liabilities.
- Submit claims or liabilities to arbitration.
- Renounce partnership claims
Conveyance of Partnership Property
- When real estate is held under the partnership name, any partner can convey title using the partnership name.
- When real estate is held by all partners, a conveyance executed by all the partners passes all rights to that property.
- A conveyance by a partner in their own name to real estate held in the partnership name passes the equitable interest in the property.
- This only applies if the conveyed interest falls within the partner's authority.
Partner’s Representations
- A partner's admissions or representations regarding partnership affairs are evidence against the whole partnership within the scope of their authority.
Liablity
- Partnership liability extends to partners for actions or omissions by a partner acting within the scope of their authority.
- The partnership is liable for losses resulting from the misappropriation of funds or property by a partner.
Apparent Partner
- A person who represents themselves as a partner, even if they're not, is liable to those who rely on that representation.
- If the partnership is bound by the representation, the apparent partner is liable as if they were a real partner.
- If the partnership is not liable, the apparent partner is liable proportionally with the other partners who consented to the representation.
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Description
This quiz covers essential concepts related to partners' property rights, their role as agents of the partnership, and the extent of their authority within the business. Understand how partnerships operate, the rights partners have, and the limitations on their actions. Test your knowledge on these key aspects of partnership law.
