Your Business Deserves To Thrive
Branscome v. Schoneweis In Branscome v. Schoneweis, Schoneweis and Woodrum, who were brothers-in-law, were associated with the operation of a live stockyard called Tallula Cattle Company (“Tallula”). [1] Schoneweis was the owner since he provided the initial working capital and Woodrum was the manager who was entitled to an equal share of commissions on the sale of all cattle of…
Cox Enterprises, Inc. v. Filip In Cox Enterprises, Inc. v. Filip, Filip was the owner of Trans Texas Properties and Elliott was not. [1] One of its employees filled out a credit application to obtain newspaper advertising services for the business and falsely listed Elliott as an owner. [2] The employee had no authority to make such representation and Elliott…
This blog will discuss the challenges of Partnership by Estoppel. Partner refers to a variety of business relationships such as co-owners, collaborators, coworkers, business associates, and even suppliers and customers, etc. We explained in our previous blog on general partnership, it is not the label, but the intent to do what in law creates a partnership (agreement to share profits,…
Partners in a general partnership owe a fiduciary duty to the partnership, just like in the context of LLCs. Partners must act as an ordinarily prudent person, refraining from competing with the partnership, and generally act in good faith. Moreover, they must put the best interests of the partnership ahead of their own. So, in the farming partnership case from…
Generally, partners are jointly and severally liable, and each partner is personally and individually liable for the full amount of all partnership obligations. For example, in the farming partnership case we discussed in our previous post, each partner would be liable to any person with a claim against the partnership. For example, if the supplier sues the partnership – each…
In the previous post of this series, we talked about general partnership and one of their most fearful characteristics. So if general partnerships exist, how do courts and others know? Statutes often state that a partnership is an association of two or more persons to carry on as co-owners of a business for profit whether or not it was intended. …
What is a General Partnership? For example, two brothers agree to invest in several tracts of real property to make some money. One brother who was an engineer and used his engineering skills to increase the value of the properties; the other brother was responsible for obtaining the title and paying taxes using his skills in marketing and administrative services.…
We work with a lot of business owners on setting up business partnerships, establishing them, and making sure they function correctly. We are helping them by trying to align the partners, to make sure the economic interest works, and to maximize everyone’s wealth and value creation. What are some things you need to think about in creating a partnership? What…
It’s often a common question that clients ask us when do we need to set up legal entities? When are we okay going without a legal entity and when should we set up an entity? Here’s a few rules and red flags to look for that might indicate that it’s time for you to set up an entity. # 1…
R. Shawn McBride recently published an article to the McBride For Business Blog on a topic that might be of interest: Why I’m Not Upset When Partnerships Don’t Happen. He the reasons why I am not upset when partnerships don’t happen is sometimes it’s better to fail early in the process. As a business lawyer (www.mcbrideattorneys.com) and later a business…