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The Partnership Act 1890 provides the default legal framework for partnerships in England & Wales. It defines partnership, sets out the rights and duties of partners, and governs the dissolution of partnerships. Its provisions apply unless varied by agreement between the partners.
Pwyntiau allweddol
- Partnership defined as 'the relation which subsists between persons carrying on a business in common with a view of profit' (s.1)
- Every partner is an agent of the firm and the other partners (s.5)
- Partners share profits equally unless agreed otherwise (s.24)
- Partners are jointly liable for the firm's debts (s.9)
- A partner must account for private profits derived from partnership business (s.29)
- Partnership dissolves on notice, death, or bankruptcy of a partner (ss.32–34)
- Partners have a duty of utmost good faith to each other