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 If you enter into a partnership without a partnership agreement, then a default law that is over a century old will apply to the partnership.
The legislators of the late 19th century did not have the business needs of the early 21st century in mind when the law was drafted and, not surprisingly, the provisions of this short Act of Parliament are often inadequate.
For instance, it is not unusual nowadays for the interests in a business to be split unequally between the partners, but the standard position under the law assumes that each partner holds an equal share in the profits and debts of a partnership.
Another example is that the law will automatically dissolve a partnership if one partner retires, even if the remaining partners intend to continue the business. This can lead to both administrative and accountancy burdens that could be easily avoided if there is a partnership agreement in place, which set out the procedure to be followed if a partner wished to retire.
By instructing JAC Solicitors to prepare a partnership agreement, you can remove the uncertainty of relying on the 1890 Act and set down clear rules as to how your partnership business is to operate.
 Partnership agreements
Setting up in business
Bringing in a new partner
Retiring partner?
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