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Partnership Analysis
Partnership Analysis
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.
2.
3.
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.
3.
All parties must share in the losses as well as the profits of the venture
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.
2.
3.
4.
5.
6.
7.
Analysis: