A partnership is an arrangement between two or more persons who carry on a common business with a view to profit. The primary source of partnership law governing this relationship is the 1890 Partnership Act. Though this Act implies certain terms into the partnership relationship, it cannot cover all the required areas and a Partnership Agreement (tailored to the partners’ specific needs), should be entered into by the parties at the formation of the partnership.
Another option for persons considering forming a partnership is a Limited Liability Partnership (LLP). This structure is a hybrid between a limited company and a partnership. Unlike a normal partnership, an LLP is governed by different partnership law and regulations, namely, the Limited Liability Partnerships Act 2000, along with elements of the Companies Act 2006.
For advice and assistance on any aspect of partnership law, please contact Andrew Tzialli or James Reeves on 020 8422 5678.
