Exhibit E: General Partnership Agreement
Section 3: Capital Contributions
Each partner must contribute $50,000 in cash to the partnership upon execution of this agreement. A separate capital account shall be maintained for each partner. For the duration of the partnership’s existence, neither partner shall withdraw any portion of his or her capital contribution.
Section 6: Salary and Income Withdrawal Rights
Neither partner shall receive any salary for services rendered to the partnership. Each partner may, however, withdraw all or any portion of the credit balance in his or her income account.
Section 7: Managerial Duties and Restrictions on Partner Powers
The partners shall have equal rights in the management of the partnership business, and each partner shall devote his entire time and efforts to the successful prosecution of partnership business. Without the consent of the other partner neither partner shall on behalf of the partnership borrow or lend money, or make, deliver, or accept any commercial paper, or execute any mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract to sell any property for or of the partnership other than the type of property bought and sold in the ordinary course of the partnership business.
A) Analyze the provisions of Exhibit E, Section 3 (“Capital Contributions.”)
B) Analyze the provisions of Exhibit E, Section 6 (“Salary and Income Withdrawal Rights.”)
C) Analyze the provisions of Exhibit E, Section 7 (“Managerial Duties and Restrictions on Partnership Powers.”)