Partnership law

Solicitors here advise on partnership law and supply agreements and other documentation for partnerships. The Partnership Act 1890 defined partnership as "the relation which subsists between persons carrying on a business in common with a view to profit". Excluded from this definition is any company registered under the Companies Act, as these bodies have their own set of statutory rules. Persons who have entered into partnership with each other are collectively called a "firm".

There must be at least two people involved in a partnership (although not necessarily natural people as companies can be partners with natural people or with other companies). Also some element of agreement is involved. The agreement does not have to be in writing, however; indeed, it need not be verbal at all - it can be implied from conduct in the absence of any express agreements.

If there is any dispute about the existence of a partnership, it will be for those alleging that the partnership exists to prove that it does, and it may well be that the date stated in the written partnership agreement (if there is one) is the best available evidence.

It is necessary that the persons concerned in a partnership are carrying on business "in common" and "with a view to profit". Thus, associations of persons formed for a non-profitmaking purpose cannot in law amount to partnerships. This rule affects associations formed for charitable purposes but is also important for members' clubs, which are often formed with the intention of covering their expenses but not of making a profit.