Partnerships are one of the simplest ways to run a business together — and one of the easiest to fall into by accident. There is no need for paperwork or registration, which means people can become partners, and personally liable for the firm's debts, without ever signing anything. As a solicitor, you'll advise clients on whether a partnership exists, what the rules are when their agreement says nothing, and how to protect them when partners join, leave or the relationship breaks down.
This lesson builds your understanding step by step:
- Nature and Formation of a Partnership — what a partnership is, how it arises, and why partners are personally liable.
- The Partnership Act and Default Rules — the rules that fill the gaps when the agreement is silent, and how partners can change them.
- Fiduciary Duties — the duties of good faith partners owe one another and how far they can be modified.
- Liability to Third Parties — how the firm and individual partners answer for debts, wrongs and holding out.
- Incoming and Outgoing Partners — who is liable for which debts when partners join and leave.
- Expulsion and Restrictive Covenants — removing a partner and restraining them after departure.
- Dissolution and Winding Up — how a partnership ends and how its assets are distributed.