Service Partner Capital Agreements: The Leading Cases and a Response to Critics

34 Pages Posted: 1 Oct 2018

See all articles by Val Ricks

Val Ricks

South Texas College of Law Houston

Date Written: 2009

Abstract

This paper clarifies the partnership accounting and legal results that should occur when a partnership involving a service partner closes at a loss. The paper concludes that the Uniform Partnership Act's default rule is not the rule the parties would have chosen. The deal the parties actually made is almost always counter to the result imposed by the code. Inasmuch as the code's rule surprises the parties, and in particular the service partner, after the partnership formation deal has already been struck, the rule is unfair. Inasmuch as the code's rule departs from the deal actually struck by the parties, the rule is inefficient.

Keywords: Partnership, Service Partner, Partnership Accounting

JEL Classification: K22

Suggested Citation

Ricks, Val D, Service Partner Capital Agreements: The Leading Cases and a Response to Critics (2009). University of Pennsylvania Journal of Business Law, Vol. 12, 2009. Available at SSRN: https://ssrn.com/abstract=3247371

Val D Ricks (Contact Author)

South Texas College of Law Houston ( email )

1303 San Jacinto Street
Houston, TX 77002
United States
7136462944 (Phone)

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