DAVID HUGHES

A ‘partnership' is defined as the relation that arises between two or more persons carrying on a business in common with a view to profit (section 1, Partnership Act 1890). The courts will look at the facts to decide whether a partnership exists. Sometimes the parties cannot simply determine this for themselves. For example, if the parties decide that one of them is an 'employee' or a ‘freelancer' and not a ‘partner', the courts may still decide that the facts exist for that person to be declared a ‘partner'. Normally the relationship is governed by a contractual agreement (a partnership agreement). However, that is only an indication of the relationship and not the deciding factor... There is no requirement in law for partners who are carrying on a business together to have a partnership agreement. A partnership agreement is a bit like a Will; while most people know that it is important to make one, it often gets left on the to-do list. Businesses carry on without the protection that..

Primary location: United Kingdom