What is the legal definition of a business partnership?
A business partnership is a type of legal relationship between two or more individuals that is created when they agree to cooperate in order to carry out a business venture. In Delaware, a business partnership is defined in the Delaware Revised Code (Del. Code Ann. Title 6 § 15-101). According to this definition, a business partnership is a “voluntary agreement between two or more competent persons to carry on a business as co-owners for their mutual profit.” This means that all members of the partnership must agree to cooperate with each other in order to generate a profit from the business venture. Additionally, all members of the partnership must also agree to share in the profits and losses of the business. In Delaware, all business partners must also comply with the Delaware Limited Liability Company (LLC) Act (Title 6 Chapter 18). Under this Act, all business partners must provide accurate financial statements and disclose any conflicts of interests to the other members of the partnership. All business partners must also agree to abide by the terms and conditions of the business partnership agreement. Overall, a business partnership is a legally binding agreement between two or more people who come together to carry out a business venture. In Delaware, business partners must comply with the Delaware Revised Code and the Delaware Limited Liability Company Act in order to ensure that the partnership functions safely and responsibly.
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