Question

Jackie is interested in the property of the Big Partnership, in which Jackie is a full partner. She wants to mortgage the property in order to collateralize loans for the organization. However, not all the partners agree with Jackie. What is Jackie's legal position with regard to the mortgage under UPA?

a. Her partners' non-agreement is legally irrelevant.
b. Jackie's interest in the partnership property cannot be assigned.
c. Jackie can mortgage her share of the organization's property.
d. UPA does not address this issue, and a court will decide on a case by case basis.

Answer 1

Under the Uniform Partnership Act, Jackie cannot mortgage partnership property without the agreement of all partners, suggesting that her partners' non-agreement is legally relevant.

Step-by-step explanation:

The question relates to Jackie's legal position regarding mortgaging partnership property under the Uniform Partnership Act (UPA). According to the UPA, all partners must agree to any act that would make it impossible to carry on the ordinary business of a partnership, such as mortgaging partnership property.

Jackie's interest in the partnership property cannot be mortgaged without the consent of all partners. Therefore, she cannot unilaterally mortgage the property to collateralize loans. If Jackie attempts to mortgage the property without the consent of her partners, her actions may be challenged, making the partners' non-agreement legally relevant.