Legal Question in Business Law in New York

The vessel would only become property of the partnership if you assign it to the partnership. A partnership, however, would be disadvantageous to you, because under partnership law you would become liable for any debts of the partnership.

This arrangement can be handled several different ways. Obviously, much more information on the deal is needed before an opinion can be given and suggestions made. There are also ancillary issues which you should contemplate, including damage/loss of the vessel, injuries sustained, etc. You want to protect yourself as much as possible. I strongly suggest you contact a lawyer to help put together an agreement that works for you.

I agree with the previous response: a partnership is so disadvantageous to you as to be a non-starter from a negotiating standpoint. Let the other folks form a company or a partnership among themselves then lease that entity the vessel. Ensure that they personally guarantee the leasee obligations (if you can get them to do so -- try using a good guy clause as is often used in commercial real estate transactions). Make sure they fully insure the replacement cost of the vessel and, depending on the nature of the lease, make sure they are responsible for the O&M and dockage. Good luck!