Legal Question in Business Law in Texas

Partnership rights

My husband and his friend started a business together. Both of them are rig welders. They are equal partners and work under the business invoices. Well, my husband's friend went ahead on his own open a checking account and cashed the checks which belong to both of them. My question is can either of them do something that should involed both their concents. Being that the business is regestered and the tax number under both their names.


Asked on 9/26/01, 11:32 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Partnership rights

Partners share equally in profit and loss. But either partner can act on behalf of the partnership, and obligate the partnership. It doesn't require joint consent. That is one of the problems with general partnerships.

The checking account should be in the partnership name, with both partners having access to the account. Each partner should also have an accounting showing their share in the partnership; that is a bookkeeping function, and should be set up by someone with knowledge of accounting. Partners can draw against their share of the profits, but only after the partnership obligations have been covered.

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Answered on 11/06/01, 6:56 pm


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