A Partnership Arises from an Agreement Express or Implied
A partnership often arises from an agreement, which can be express or implied. The term “partnership” refers to a business relationship in which two or more individuals agree to work together to achieve a common goal. This type of relationship can be established through a formal agreement, but it can also be formed through the actions and behavior of the parties involved.
An express partnership arises when the parties involved have explicitly agreed to form a partnership. This agreement is typically formalized through a written contract, which outlines the terms and conditions of the partnership. This agreement can cover a wide range of topics, including the purpose of the partnership, the roles and responsibilities of each partner, the division of profits and losses, and how the partnership will be dissolved if necessary.
Alternatively, a partnership can also arise through implied agreement. This occurs when the parties involved act as if they are in a partnership, even though there may not be an explicit agreement. For example, two individuals who start working together to develop a product or service may be deemed to be in a partnership, even if they have not entered into a formal agreement.
In order for an implied partnership to exist, there are certain criteria that must be met. First, there must be a mutual intent between the parties to form a partnership. This intent can be inferred from the actions of the parties involved. Second, there must be a sharing of profits and losses. This means that the parties must agree to share in the financial gains and losses of the business. Finally, there must be a joint ownership of the business assets. This means that the parties must have a common interest in the property and assets of the partnership.
Partnerships can be a great way for individuals to achieve common goals and to share the risks and rewards of business. However, it is important to establish a clear agreement before starting a partnership, whether it is express or implied. A formal agreement can help to prevent misunderstandings and disputes in the future, and can provide a clear framework for the operation of the business.
In conclusion, a partnership can arise from an agreement express or implied. An express partnership is established through a formal written contract, while an implied partnership is formed through the actions and behavior of the parties involved. Regardless of the type of partnership, it is important to establish clear expectations and understandings before starting a joint venture. With clear communication and a solid agreement in place, partnerships can be a successful and rewarding way to achieve business objectives.
