Simple partnership agreement: peculiarities and conditions of imprisonment

A simple partnership agreement is a document that allows you to more effectively carry out entrepreneurial activities. A simple partnership, or consortium, is a temporary association created for the conduct of entrepreneurship. This structure is characterized by mobility and low cost. This form of organization makes it possible in a short time to create a basis for long-term cooperation and allows more effective use of joint knowledge and resources.

It is worth saying that the contract of simple partnership was used even in ancient Rome. This form of agreements was extended in pre-revolutionary Russia. It allowed to unite the property and the capital belonging to various people, for conducting business. Under the terms of the agreement, each party to the agreement could achieve its goals: improving the quality of goods and competitiveness of products, increasing profits, etc. In the future, a simple partnership was also used in economic activities, only this form of organization was called joint activity.

Simple partnership agreement: model, rights and obligations

The main duty of the participants in the partnership agreement is to work together to achieve common goals and objectives, make an individual contribution to the common cause, keep the property in good condition, maintain the accounting of joint assets. Consorters together bear losses and expenses arising from joint business conduct, in proportion to investments in the common cause.

Participants in the consortium under the partnership agreement, in addition to the duties, have common rights. They can use common property, take part in common affairs, get access to all documentation related to business management. Also, comrades may act on behalf of all participants in the conduct of a common case, in the case where the contract of a simple partnership does not contain reservations that the conduct of cases is performed by individuals or all participants together.

Consorters have the right to make transactions with a third party on behalf of all parties to the agreement if there is a power of attorney issued by the other partners. They also distribute the profit received as a result of joint business conduct in proportion to the individual contribution of each person to the common cause.

The contribution is recognized by everything that the comrade contributes to the common business, including property, money, professional skills, skills, knowledge, as well as business connections and reputation. Any contributions by mutual agreement of all partners are subject to monetary estimation and assume an equal value, unless other conditions follow from actual circumstances.

The conduct of a common cause can be carried out by each participant. The simple partnership agreement also provides that general work may be assigned to individual members. In such a case, the authority to carry out activities is certified by a special power of attorney or signed by all participants of the partnership.

In relation to third parties, consortium participants can not invoke the limited rights of the person who made the transaction, if they can not prove that the third person knew about the restrictions at the time of the transaction.

A comrade who performed the transaction on behalf of the other participants, without the right to do so, may require full recovery of all costs and losses incurred, if it is proved that the work was necessary and represented the interests of all consortia.

The simple partnership agreement determines the responsibility of all parties.

Each of the participants is responsible for the general obligations of their property in the proportion of the contribution made, if not engaged in entrepreneurial activities.

When doing business, all comrades are jointly and severally responsible for all obligations, regardless of what was the basis for their occurrence.