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Two young men have brought a partnership agreement to you. Their names are Jack Jones and Todd Thomas. They want you to notarize the contract.

After confirming their identities, you ask if they both understand the contract. They say yes. However, you have a feeling Todd has barely read it.

To confirm he understands what he's signing, you're going to ask him some questions.

The following are some sections of the contract. Read them and come up with some questions you can ask Todd.

  • The partners will each contribute $15,000 in cash.
  • Each partner shall devote substantially all of his ordinary working time to the carrying on of the business of the partnership.
  • Any differences arising in the course of business shall be decided by Jack Jones.
  • No partner may receive a salary for work done for the partnership, but the profit or loss of the business may be periodically allocated to the income accounts of the partners.

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.