The nature of a general partnership and its legal framework


Published by a ³ÉÈËÓ°Òô Corporate expert
Practice notes

The nature of a general partnership and its legal framework


Published by a ³ÉÈËÓ°Òô Corporate expert

Practice notes
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This Practice Note considers general partnerships formed under the partnership Act 1890. It describes the principal legislation and cases that form the legal framework for partnerships. It also considers how to determine whether someone is a partner, the circumstances in which partners may be treated as employees and workers, a partner’s authority, the liability of partners for the debts and obligations of the partnership and the treatment of partnership property.

Sources of partnership law

The main body of law governing a general partnership formed under English law (as opposed to a limited liability partnership, limited partnership or a partnership incorporated under Scottish law) is the Partnership Act 1890 (PA 1890), which has survived largely intact for over a hundred years. However, it is not a complete code of partnership law and expressly preserves the rules of equity and common law applicable to partnerships, except where they are inconsistent with the express provisions of the PA 1890.

There will often be a written agreement between the partners setting out the rights and duties of the

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Jurisdiction(s):
United Kingdom
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Key definition:
General partnership definition
What does General partnership mean?

Often referred to as a partnership. A partnership under the Partnership Act 1890, namely the relationship that subsists between persons (which includes individuals or corporate entities) carrying on a business (which includes every trade, occupation and profession) in common with a view of profit. The Partnership Act does not provide a complete code of partnership law and expressly preserves the rules of equity and common law applicable to partnerships. As a partnership is not a separate legal entity from its partners it cannot acquire rights, incur obligations or hold property in its own right. It is therefore important to distinguish between partnership property and property that personally belongs to an individual partner.

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