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Revised Uniform Partnership Act of 1997 (RUPA)
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A quick definition of Revised Uniform Partnership Act of 1997 (RUPA) :
The Revised Uniform Partnership Act of 1997 (RUPA) is a set of rules that govern how partnerships work. A partnership is when two or more people work together to run a business. RUPA is an updated version of the rules that were made in 1914. The rules cover things like how partnerships are created, who is responsible for what, and what happens if the partnership ends. RUPA only applies to certain types of partnerships, not all of them. It is used in many states in the United States when there is no agreement between partners or when an agreement does not cover a specific issue.
A more thorough explanation:
The Revised Uniform Partnership Act of 1997 (RUPA) is a set of updated rules that govern general partnerships and limited liability partnerships in the United States. It was created by the Uniform Law Commission to replace the Uniform Partnership Act of 1914 (UPA).
The UPA is a model set of rules that governs how partnerships are created, how they are managed, and how they are dissolved. It applies to general partnerships and limited liability partnerships, but not to limited partnerships.
For example, if two people start a business together and do not create a partnership agreement, the UPA will govern how their partnership is managed. If they do create an agreement, but it does not address a particular issue, the UPA will provide guidance on how to handle that issue.
The RUPA updates and clarifies many of the rules in the UPA to reflect changes in business practices and legal standards. It has been adopted by many states in the US and is used to govern partnerships in those states.