What is a business partnership?

You may not have signed any formal contracts, but the act of two or more people setting up a business together and sharing the profit (or loss) is considered as a partnership in legal terms.

This type of agreement means that there’s a division of profits, decision making and how partners leave the partnership. Although formal documentation isn’t required for a partnership, we highly recommend that there is an official agreement drafted to cover assets of your business and your individual roles. You may wish to limit your liability and have a Limited Liability Partnership.

The risk with no written partnership agreement

Without a written agreement, the Partnership Act 1890 comes into effect. With its own rules, it means that your business could be under rules that you may not necessarily want. This is why having a written agreement will mean you eliminate the risk of any dispute of these rules.

For a partnership agreement, we advise you work with a solicitor to draft this.

A typical agreement will include but is not limited to;

  • The divide of profits and losses
  • Confirmation of who owns what percentage of the business
  • Each parties’ contribution
  • Control over decision making
  • How new partners should be appointed or existing dissolved
  • How disputes should be dealt with
  • Provisions for buy or sell out
  • How capital will be split on dissolution

For support on business partnerships, get in touch with our solicitors and legal executives today.

Business partnership disputes

Whether you have a written agreement or not, we can support you in your dispute.

The common issues we litigate include;

  • Problems with partnership accounts
  • Misrepresentation
  • Negligence
  • Attempts to remove a partner

Disputes with a partner are very difficult on a personal level and can be very time consuming. It’s imperative that you gain legal advice from an expert.

There is a host of reasons as to why you and your partner/s are in a dispute. You can be rest assured that our team have overcome and litigated many of these disagreements.

Do you require legal representation or advice?

Get in touch with our team. We have solicitors local to you in Wiltshire and Hampshire.

 

Charles Goodbody Partner Head of Family and Private Client Warminster

Charles Goodbody
Partner

Please Contact
cgoodbody@middletonssolicitors.co.uk

01985 214444

Middletons Solicitors have a reputation for excellence with offices based in Warminster, Andover and Stockbridge. With more than 50 years’ experience delivering comprehensive legal services, our team of legal experts provides the highest standard of advice and service.

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