This page mainly applies to England and Wales. Scotland and Northern Ireland may have different rules — check the jurisdiction before relying on this information.
Last amended by Limited Liability Partnerships Act 2000 in 2000. Created LLPs as an alternative to traditional partnerships with limited liability.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
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.
Key Points
- 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
- Partnership defined — business carried on in common with a view of profit (s.1)
- Partners are agents of the firm and each other (s.5)
- Joint and several liability for firm's obligations
- Default rules — equal sharing of profits and losses, no salary, mutual rights of management
- Good faith — duty of utmost good faith between partners (s.28-30)
- Dissolution by notice, death, or illegality
Parts & Sections
Amendments History
2000 — Limited Liability Partnerships Act 2000
Created LLPs as an alternative to traditional partnerships with limited liability.