Simple partnership agreement: peculiarities and conditions of imprisonment

A simple partnership agreement is a document,which 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 a simple partnership agreementused in ancient Rome. This form of agreements was extended in pre-revolutionary Russia. It allowed to unite 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 responsibility of the parties to the agreement onthe partnership 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 a consortium under a partnership agreementIn addition to duties, they have common rights. They can use common property, participate in common affairs, get access to all documentation related to the business. 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.

Consortors have the right to enter into transactions withthird 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 togeneral business, including property, cash, 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.

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

In respect of third parties, the consortium members do notmay refer to 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.

The comrade who executed the transaction on behalf of the restparticipants, without the right to do so, may require full recovery of all costs and losses incurred, if it is proved that this 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 doing business.

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