Valid Formation of General Partnership

This page includes a writing template for analyzing this topic and usage notes to guide its application. In general, the template is designed to serve as a starting point for your analysis. It should be adapted to fit the specific facts of your case and your professor’s preferences.

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Writing Template

Issue

I: The issue is whether Party can prove the general partnership was validly formed.

Analysis

R: To establish the formation of a general partnership, it must be shown that there was (1) an association of (2) two or more persons (3) with the intent to carry on a business for profit.

1. Association

R: The existence of an association may be established through express or implied evidence. While no written agreement is required, an association may be proven by conduct or statements demonstrating mutual intent to form a business relationship.

A: Here, [apply rule to facts].

C: Therefore, the parties [formed/did not form] an association.

2. Two or More Persons

R: A valid partnership must consist of at least two persons, defined broadly to include individuals or legal entities with the capacity to contract. 

A: Here, [apply rule to facts].

C: Therefore, the association [consists/does not consist] of two or more persons.

3. To Carry On

R: To prove the parties intended to carry on a for-profit business, there must be evidence of joint intent to engage in profit-driven activities. A presumption of partnership formation arises from the sharing of profits, unless the profit-sharing is for purposes unrelated to partnership intent, such as payments for debts, loan interest, rent, wages, goodwill, or retirement or health benefits. 

A: Here, [apply rule to facts].

C: Therefore, the parties [intended/did not intend] to carry on for-profit business.

4. Agreement

R: A formal partnership agreement is not a prerequisite; however, if the parties have executed an agreement, it may be subject to the Statute of Frauds, meaning the partnership agreement must (1) identify the parties, (2) outline the subject matter, (3) delineate key terms and obligations, and (4) be signed by the party against whom enforcement is sought.

A: Here, [apply rule to facts].

C: Therefore, since a partnership agreement [exists/does not exist] it [is/is not] subject to the Statute of Frauds, which [is/is not] satisfied.

Conclusion

C: Therefore, since all of the relevant elements [are/are not] met, Party [can/cannot] prove the general partnership was validly formed.

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Usage Notes

JurisJotter templates synthesize legal principles into a practical format that supports the development of well-structured, point-rich analyses in a timed exam. 

The template features (1) headers identifying the overall issue, analysis, and conclusion. If the analysis begins with an umbrella rule that identifies elements, factors, or steps of the analysis, it will be followed by subheaders that signpost the analysis of each component.

The template also features (2) IRAC labels at the beginning of each paragraph. These headers and labels are included for educational purposes, offering guidance on structuring your analysis. Your usage of the headers is optional but can be helpful to readers. We advise against including the IRAC labels in submitted work.

The templates serve as a general guide for writing and should be adapted to align with (1) your specific factual circumstances and (2) your professor’s preferences, particularly if your professor provides explicit formulations of rules or analyses. For example, you may add or subtract an element or modify its language. Regardless of whether your professor provides explicit formulations, (3) this template will assist you in crafting point-rich analyses.

Please note that these templates are writing aids and not finished products. They are efficiently designed for exam essays to demonstrate conceptual understanding; thus, they are not comprehensive outlines with historical context or dicta.

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