This third tract was acquired by the partnership out of partnership funds and for partnership purposes. Who owns each of the three tracts? Why?
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Virginia, Georgia, Carolina, and Louis were partners doing business under the trade name of Morning Glory Nursery. Virginia owned a one-third interest, and Georgia, Carolina, and Louis owned two-ninths each. The partners acquired three tracts of land for the purpose of the partnership. Two of the tracts were acquired in the names of the four partners, “trading and doing business as Morning Glory Nursery.” The third tract was acquired in the names of the individuals, the trade name not appearing in the deed. This third tract was acquired by the partnership out of partnership funds and for partnership purposes. Who owns each of the three tracts? Why? |
Explanation
To transfer the title of the instrument to more than one partner does not require the specification of the capacity of the partnership. The property may be the partnership property. The transfer of the title is dependent on the purpose of the partners, which property belongs to the partnership or the partners in their capacities.
Property is presumed to be a partnership property bought with partnership funds. When the partners are failed to express their purpose or intention of the purchased property, without consideration.
The result is the same in the Uniform Partnership Act as in the RUPA, only the sections are different.
Verified Answer
For a partnership, the first two tracts are obtained and the name of the partnership includes a title. This is defined in Section 204(a) and 204(b) of the Revised Uniform Partnership Act (RUPA).
The third tract is obtained for partnership funds.
