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Does An Llc Need A Partnership Agreement

Another legal consequence of a partnership is that all partners are agents of the partnership and can bind the partnership and therefore its partners to third parties. This is because all partners are agents of the partnership. This agency means that you are responsible for all contracts entered into by your partners on behalf of the partnership for activities normally carried out by the partnership. For example, a partner can bind you to a contract with a supplier, but cannot bind the partnership for a family trip to Disneyland, unless the other partners have expressly approved the cost of the Disneyland trip. .