12 MANAGEMENT OF DAIRY PLANTS 



of bookkeeping records, duration of the company, and other 

 special provisions. 



A verbal agreement is sufficient for creating a partnership, 

 but in the absence of a written agreement the law assumes that 

 partners share profits and losses equally. 



Who May Be Partners. — All legally competent persons 

 may enter into a partnership. Insanity, idiocy, or habitual 

 drimkenness disqualifies persons from becoming partners. 



A minor may enter into a partnership, but contracts by him 

 are voidable and he cannot be held for partnership liabiUty. 

 The minor, when he comes of age, or before, has the further 

 privilege of renouncing his connection with the company and 

 of disaffirming past transactions if he chooses. If, however, he 

 remains connected with the company a reasonable length of 

 time after coming of age, the law assumes that he is a legal 

 partner. 



Classes of Partners. — According to their responsibilities, 

 partners may be designated as: 



1. Ostensible Partner, the real partner; that is, the one known 

 to the world as a partner. 



2. Dormant Partner, the silent partner; that is, not known 

 to the world as a partner but partaking of profits. He can 

 sever his connection with the company without giving public 

 notice of the same and is not liable for debts contracted after 

 his retirement. 



3. Nominal Partner, appearing to the world as partner with- 

 out having any interest in the firm's business. He is liable to 

 a third party to the same degree as the ostensible partner. 



4. Special Partner, one who supplies a certain amount of 

 capital. If complying with the statutory requirements, he is 

 liable only in proportion to his interest in the firm. 



Liabilities of the Firm. — A partnership has the privilege 

 of doing business in the firm name and may sue or be sued 

 like an individual. Debts contracted by any member of the 

 firm for purchases made on the firm account shall be paid by 

 the partnership. In case of the partnership being dissolved, 

 the partners, in accordance with agreement, will divide the 



