Partnership Disputes
Partnership Law: Understanding Your Legal Obligations
Unlike a company, a partnership is not a separate legal entity. It does not exist independently of the partners but represents the relationship between them. As a result, many individuals enter into business partnerships without fully understanding the legal implications or having a written agreement. In such cases, the relationship is governed by the 1890 Act, which can lead to unexpected consequences.
Key Points about the Partnership Act 1890:
- Definition of Partnership: The Act defines a partnership as a relationship between individuals who carry on a business together with the intention of making a profit.
- Default Rules: In the absence of a partnership agreement, the Act establishes default rules regarding profit-sharing, liability, and decision-making within the partnership.
- Dispute Resolution: While the Act provides a legal framework, it encourages partners to resolve disputes through negotiation or alternative dispute resolution (ADR) methods, such as mediation and arbitration, before pursuing legal action in court.
How Our Employment Solicitors Can Help
Partnership disputes are a common challenge for businesses, but they don’t have to lead to the breakdown of a partnership or the dissolution of a business.
By understanding the legal framework, identifying common causes of disputes, and taking proactive steps to prevent conflicts, businesses can manage disputes effectively and maintain valuable relationships.
At Wildings Solicitors, we are dedicated to helping businesses resolve partnership disputes in an efficient, amicable way, focused on long-term success.
Book your initial consultation with our Employment Solicitors in Birmingham. Freephone 0330 333 8797, request a callback or email info@wildings-solicitors.co.uk for specialist advice.
