Legal Question in Business Law in United Kingdom

Re: Partnership rights

The rights obligations and share of profits, assets and losses of a partnership are determined by the partnership agreement or if there is none the Partnership Act. Any money introduced by one partner should be refected as Capital in the Partnership accounts and is repayable to the partner who introduced it.

Normally profits and losses will be divided equally unless there is an ageement that states differently.

If there is a written Partneship Agreement you will need to provide a copy to obtain more detailed advice.

Re: Partnership rights

Hi. This must be very worrying, and you are right to think that something needs to be done to protect your position.

It seems certain from what you say that you and your boyfriend went into business together with a view to profit. This is therefore indeed a legal partnership and this will be governed by the terms of the agreement you made, whether or not in writing. On any aspect of the partnership where you did not have an agreement, the rights and obligations will be as set out in the Partnership Act 1890.

It would seem that all the money which went in to starting the business came from you. It would effectively be a loan by you to the partnership. However the terms of that loan, your right to its return, interest on the amount, and security for the money will depend upon any partnership agreement and what was agreed. I should need to know more about this before I could advise specifically.

It is also worrying that he appears to have taken over the management of the business. Certainly under the Partnership Act both partners have an equal say in running the business.

I would not wish to cause you any undue concern, but it is management of the partnership caused it to collapse you would be in dire danger of losing your money. Urgent action is required.

Please let me know if I can help further, and if so I shall require a little more information to advise you specifically on what steps should take.

Kind regards

Andrew Dutton

Legal Zone

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