- 15 Marks
BL – Nov 2011 – L1 – SB – Q5 – Partnership Law
Discussing the required minimum contents of a partnership agreement and legal considerations in a dispute.
Question
(a) “It is not necessary for any two or more persons who intend to enter into a partnership to enter into any formal agreement. Where, however, they decide to do so, such agreements must have certain minimum contents.”
State any SIX of these minimum contents. (6 Marks)
(b) Femi and Solape entered into an agreement to contribute equal amounts to buy books. They purchased the books and shared them between themselves for sale. Subsequent to the initial purchase, however, Femi purchased books alone. Solape demanded that she share equally with Femi the profit made from the sale of the books, but Femi refused on the ground that Solape had not contributed towards the purchase of the books. Solape threatened to institute a court action for one half of the profit made on the sale of the books, claiming a partnership agreement. The written agreement between them was for sharing of the books purchased, not for sharing of the profit.
You are required to advise the parties. (9 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Business Law, Legal Contracts, Partnership Agreement, Profit Sharing
- Level: Level 1
- Topic: Partnership Law
- Series: NOV 2011