Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Articles of partnership
see partnership agreement.
Copartnership
See PAR rlEKStttll.( The terms copartnership and partnerslup are equally old - each having first appeared in the 1570s
Partnership
A voluntary association of two or more persons who jointly own and carry on a business for profit. ( Under the Uniform Partnership Act, a partnership is presumed to exist if the persons agree to share proportionally the business's profits or losses. Cf. JOINT VENTURE; STRATEGIC ALLIANCE.
Subpartnership
An arrangement between a firm's partner and a nonpartner to share the partner's profits and losses in the firm's business, but without forming a legal partnership between the partner and the nonpartner.
Uniform Partnership Act
A model code promulgated in 1914 to bring uniformity to state laws governing general and limited partnerships. ( The act was adopted by almost all the states, but has been superseded in several of them by the Revised Uniform Partnership Act (1994). - Abbr. UPA.
aggregate theory of partnership
the theory that a partnership does not have a separate legal existence (as does a corporation), but rather is only the totality of the partners who make it up. cf. entity theory of partnership.
collapsible partnership
Tax. A partnership formed by partners who intend to dissolve it before they realize any income. ( Any partner's gain resulting from unrealized receivables or inventory that has increased substantially in value will be treated by the IRS as ordinary income rather than as capital gain. IRC (26 USCA) § 751. Cf. collapsible corporation under CORPORATION.
commercial partnership
. See trading partnership. family partnership. See FAMILY PARTNERSHIP.
entity theory of partnership
The theory that a partnership is an entity with a legal existence apart from the partners who make it up. Cf. AGGREGATE THEORY OF PARTNERSHIP.
estate in partnership
A joint estate that is vested in the members of a partnership when real estate is purchased with partnership funds and for partnership purposes. estate in possession. An estate in which a present interest passes to the tenant without any contingency; an estate in which the tenant is entitled to receive the rents and other profits arising from the estate.
family partnership
A partnership that includes family members. IRC (26 USCA) § 704(e). See FAMILY-PARTNERSHIP RULES.
family-partnership rules
Laws designed to prevent the shifting of income among partners, esp. family members, who may not be dealing at arm's length.
general partnership
See PARTNERSHIP.
general partnership.
A partnership in which all partners participate fully in running the business and share equally in profits and losses (though the partners' monetary contributions may vary).
implied partnership
See partnership by estoppel.
law of the partnership
The rule that the parties' agreement controls the features of a partnership.
limited partnership
See PARTNERSHIP.
limited partnership association
See PARTNERSHIP ASSOCIATION.
limited partnership.
A partnership composed of one or more persons who control the business and are personally liable for the partnership's debts (called general partners), and one or more persons who contribute capital and share profits but who cannot manage the business and are liable only for the amount of their contribution (called limited partners). ( The chief purpose of a limited partnership is to enable persons to invest their money in a business without taking an active part in managing the business, and without risking more than the sum originally contributed, while securing the cooperation of others who have ability and integrity but insufficient money. - Abbr. L.P. - Also termed special partnership; (in civil law) partnership in commendam.
limited-liability partnership.
A partnership in which a partner is not liable for a negligent act committed by another partner or by an employee not under the partner's supervision. ( All states have enacted statutes that allow a business (typically a law firm or accounting firm) to register as this type of partnership. - Abbr. L.L.P.
master limited partnership
. A limited partnership whose interests or shares are publicly traded. See publicly traded partnership.
mining partnership
An association of persons to jointly share a mining business, including the profits, expenses, and losses. ( The partnership has features of both a tenancy in common and an ordinary commercial partnership. "It has generally been held that the law governing ordinary commercial or trading partnerships applies, with a few exceptions, to mining partnerships. The principal exception and the main distinction between mining partnerships and commercial partnerships generally is based on the fact that the principle of delectus personae, meaning the right of a partner to exercise choice and preference as to the admission of any new members to the firm, and as to the persons to be so admitted, does not apply to mining partnerships . ..." 58 C.J.S. Mines and Minerals § 387, at 380 (1998).
noncommercial partnership
See nontrading partnership under PARTNERSHIP
nontrading partnership
. A partnership that does not buy and sell but instead is a partnership of employment or occupation. -Also termed noncommercial partnership.
particular partnership
A partnership in which the members unite to share the benefits of a single transaction or enterprise.
partnership agreement
A contract defining the partners' rights and duties toward one another - not the partners' relationship with third parties. - Also termed articles of partnership.
partnership association
A business organization that combines the features of a limited partnership and a close corporation. ( Partnership associations are statutorily recognized in only a few states. - Also termed statutory partnership association; limited partnership association.
partnership at will
See PARTNERSHIP.
partnership by estoppel
A partnership implied by law when one or more persons represent themselves as partners to a third party who relies on that representation. 0 A person who is deemed a partner by estoppel becomes liable for any credit extended to the partnership by the third party. - Also termed implied partnership.
partnership certificate
A document that evidences the participation of the partners in a
partnership distribution
A partnership's payment of cash or property to a partner out of earnings or as an advance against future earnings, or a payment of the partners' capital in partial or complete liquidation of the partner's interest.
partnership distribution.
See DISTRIBUTION
partnership for a term
A partnership that exists for a specified duration or until a specified event occurs. ( Such a partnership can be prematurely dissolved by any partner, but that partner may be held liable for breach of the partnership agreement. Cf. partnership at will.
partnership for a term.
See PARTNERSHIP.
partnership in commendam
See limited partnership under PARTNERSHIP. partnership insurance. See INSURANCE
partnership in commendam.
See limited partnership.
partnership insurance
1. Life insurance on the life of a partner, purchased to ensure the remaining partners' ability to buy out adeceased partner's interest. 2. Health insurance for a partner, payable to the partnership to allow it to continue to operate while the partner is unable to work due to illness or injury.
partnership.
The certificate is often furnished to financial institutions when the partnership borrows money.
publicly traded partnership
A partnership whose interests are traded either overthe-counter or on a securities exchange. These partnerships are treated as corporations for income-tax purposes. = Abbr. PTP.
special partnership
1. See limited partnership. 2. A partnership formed only for a single venture.
statutory partnership association
See PARTNERSHIP ASSOCIATION.
tiered partnership
An ownership arrangement consisting of one parent partnership that is a partner in one or more subsidiary partnerships.
trading partnership
A partnership whose usual business involves buying and selling. -Also termed commercial partnership.
umbrella limited partnership
A limited partnership used by a real-estate investment trust to acquire investment properties in exchange for shares in the partnership. See umbrellas partnership real-estate investment trust under REAL-ESTATE INVESTMENT TRUST.
umbrella partnership real-estate investment trust
A REIT that controls and holds most of its properties through an umbrella limited partnership, as a result of which the trust can acquire properties in exchange for the limited-partnership interests in the umbrella while triggering no immediate tax obligations for certain sellers. ( This is a structure that many REITs now use. - Abbr. UPREIT.
umbrella-partnership real-estate investment trust
See REAL-ESTATE INVESTMENT TRUST.
universal partnership
A partnership formed by persons who agree to contribute all their individually owned property - and to devote all their skill, labor, and services - to the partnership.