Types of business and agency law

One natural person trading on their own account

A sole trader has unlimited liability, because they're personally responsible for all debts incurred.

Two or more persons in business in common with an aim of profit

Ordinary, LP, LLP

Under section 1 of the 1980 Partnership Act.

LLP

No

1. Register for tax purposes as self-employed (if they make more than £1000 a year) 2. The person must keep up-to-date accounting records. 3. Must register the business name if your own name is not being used.

Yes

The sole trader is declared bankrupt under the Insolvency Act 1986.

No, although there normally is one

An ordinary partnership has no legal identity, as it is seen as a collection of individuals, not a distinct entity.

- Every partner is an agent of the firm. - The firm is bound by anything a partner is expressly authorised to do. - Partners can act within the scope of their usual authority.

An agent is a person whose acts are treated in law as the acts of another person

every partner is jointly liable for the obligations and debts of the firm, new partners are not liable for things done before they joined, old partners remain liable for debts incurred before leaving.

By agreement or notice, automatically, or by the court

1907 Limited Partnerships Act

They must be registered at Companies House, there must be at least one partner with unlimited liability, and the limited partner(s) cannot take part in the running of the business.

Partners are limited to the extent of their capital contribution, and these must be disclosed to Companies House.

No they do not.

To maximise security and to exercise limited liability.

LLP Act 2000

Yes

Partners are responsible for their investments only.

Professionals such as: Accountants, Lawyers, and doctors.

The agent acts on behalf of the principal, and has authority to make agreements which are binding on P.

Commercial agent, factor/mercantile, special agent, general agent, partner agent

Has p's authority to take possession of P's property in order to sell it

Express or implied, by estoppel, by necessity, by ratification.

An unauthorised agent is given apparent authority when a principal's own conduct leads a third party to reasonably believe that the agent has authoirty.

When an emergency forces A to act for P's benefit, even though there was no prior consent or agreement. A cannot get in contact with P, and so acts in a reasonable manner.

Great Northern Railway v Swaffield. Swaffield sent his horse by rail, and no one collected it. GNR then stabled the horse and sued for the charges. GNR won; they had to take reasonable care of the horse.

A principal retroactively approves an action undertaken on their behalf by an agent who lacked proper authority.

No