| Abstract [eng] |
When selecting a legal form for business organization limited liability is currently the predominant feature for the investors, therefore different forms of legal structures with limited liability have received the most scholarly attention. In some countries, however, small business sector prefers doing business via a partnership, which is traditionally considered to be based on the freedom of contracts. Some closely held companies also transform partnership-type principles to internal relations of their owners. Considering significance of small and medium-sized business sector in the economy and the European Commission‘s commitment to small enterprises, as well as its influence to the closely held companies, this article develops understanding and the main features of partnership, as an external business as sociation. The modern law retains the core principles of traditional partnership, e.g. application of Intuitus Personae principle, partners‘ fiduciary duties, „self representation“ doctrine, contractual flexibility inter se, partners’ unlimited liability. Nevertheless, different emphasis is made on the essential conditions and the features of the partnership agreement, its classification in the general system of contracts by the various countries‘ legislation, doctrine and jurisprudence. Partnership‘s entity or aggregate status also contributes in modification of traditionally developed principles. Understanding of the partnership arrangement is crucial, as even unintentionally created partnership inter se may lead to unlimited liability towards the business‘ creditors, all partners in solidum. |
