Difference between partnership and co ownership
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may seem that the terms partnership and co-ownership are similar to one another and are often mistaken to be the same. However, there are quite a number of differences between the two. While a partnership is set solely for the purpose of making profits and carrying out business activities, a co-ownership is set up with the aim of jointly reaping the benefits of, or enjoying property, assets, funds, rights, etc. There are number limitations in partnerships when it comes to the transfer of shares and number of members. Such limitations are not enforced in a co-ownership. While a co-ownership is not a partnership, a partnership certainly creates a co-ownership between the members in the partnership. Another main difference between the two is that in a partnership a partner can act as an agent and this can bind the firm to a partner’s actions, whereas in a co-ownership there is no agency affiliation and each co-owner can be held answerable to his own actions.
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may seem that the terms partnership and co-ownership are similar to one another and are often mistaken to be the same. However, there are quite a number of differences between the two. While a partnership is set solely for the purpose of making profits and carrying out business activities, a co-ownership is set up with the aim of jointly reaping the benefits of, or enjoying property, assets, funds, rights, etc. There are number limitations in partnerships when it comes to the transfer of shares and number of members. Such limitations are not enforced in a co-ownership. While a co-ownership is not a partnership, a partnership certainly creates a co-ownership between the members in the partnership. Another main difference between the two is that in a partnership a partner can act as an agent and this can bind the firm to a partner’s actions, whereas in a co-ownership there is no agency affiliation and each co-owner can be held answerable to his own actions.
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