Partnership & Contract law

Hello Tessa

Can I address the page 62-64 question only

I have been watching his Lecture on this link
https://opentuition.com/acca/f4/partnership/

Matters to Be agreed
where he explains when partners form a partnership partners should agree on the following
Accounts and audit-partners must agree who will keep the accounts, whether they will have the accounts audited, what the year end is going to be
D-They resolve the division of profits
D-Drawings…relating to how much each partner is allowed to withdraw
C-Capital of the firm-is the capital fixed? where each partner contributes a fixed amount or is it floating/variable how much can each partner withdraw
I-Interest agreement
S-Partners should agree on the Salaries
C-current and capital account
G-Goodwill how to calculate it in the event that a partner dies or retires
T- The time Limit of the partnership.If there is no period of time it is called a partnership at will that can be dissolved at any time simply by giving a notice.

Dispute
M-Management
E-Equality-partners shall share equally in the division of Profits
D-Derived benefits
I-Indemnity
C-Competition
S-If there was no agreement about salary,no partner is entitled to a salary as of right
I-Interest-no interest is charged on drawn accounts, no interest is credited on capital account,however interest at the rate of 5% per anum is made on loans and advances over and above the firm’s fixed capital contribution
N-No new person may be introduced as a partner to the firm with no unanimous consent
B-Books of accounts-partnership accounting records shall be available for inspection by any partner at any time
E-Expulsion..no majority can expel a partner
D-disputes.normally settled by majority however no change may be made in the nature of the firm’s business without unanimous consent

Dissolutions

D Death of a partnership
I-Insolvency(bankruptcy)
S-Where 1 partner secures his share of the partnership as security for his private debts
S-Sending of notice If one partner sends notice in a partnership at will to all partners that ends partnership
O-Object of joint venture is ended or is over
L-Lapse of time if a partnership is created for a fixed period of time then on expiration of that time the partnership will automatically cease/stop

U-unable to carry out one’s share of the partnership agreement
T-Termination by the court under the concept of Just and Equitable
I-Insanity
O-only capable of operating at a loss
N-Nefarious Conduct where a partner is guilty of conduct that affects the carrying on of the partnership prejudiciously
S-Shirty conduct -where a partner is persistently in breach of the partnership agreement

First 6 are automatic grounds of dissolution, last 6 are open to the open to argument in the courts(subjective)

I hope that will assist you in the first part page 62-64

Kind regards