How can I terminate by partnership business (one other partner)

[Andrew Horne]

Is it possible to terminate a partnership business if there is no partnership agreement? Any ideas where I can get the correct copy for such a termination, and in law what constitutes 'serving' a termination notice? If it's allowed, can anyone recommend a law firm that can help me - that doesn't cost a fortune?

 

[The Byre]

Just read up on partnership law!

A common law partnership is terminated the very moment you write the magic words "I herewith terminate the partnership between X & Y trading as Z."

 

[Chris Ashdown]

You then divide up the assetsor debts of the partnership equally or on a agreed basis

 

[Mr D]

Is it possible to terminate a partnership business if there is no partnership agreement? Any ideas where I can get the correct copy for such a termination, and in law what constitutes 'serving' a termination notice? If it's allowed, can anyone recommend a law firm that can help me - that doesn't cost a fortune?

Are the partners willing to dissolve the business and will they agree to the dividing of debts and money between them?

 

[Andrew Horne]

Are the partners willing to dissolve the business and will they agree to the dividing of debts and money between them?

The issue is that the business is insolvent and the other partner wishes to continue trading on a hope and a prayer. This partner is not prepared to risk further losses as the assets do not equal liabilities and the level of debt whilst manageable now will not be if there are further losses.

 

[Scalloway]

If the business is insolvent then as partners you are jointly and severally liable for all the partnership debts. So in theory your partner could run up more debt, then do a runner and leave you to settle all the partnership debts yourself.

This is very dangerous ground.

How to wind up an insolvent partnership.

https://www.gov.uk/government/publi...rship/how-to-wind-up-an-insolvent-partnership

 

[Andrew Horne]

If the business is insolvent then as partners you are jointly and severally liable for all the partnership debts. So in theory your partner could run up more debt, then do a runner and leave you to settle all the partnership debts yourself.

This is very dangerous ground.

How to wind up an insolvent partnership.



Thanks for these guides, in all honesty I have found, them and as usual with .gov sites, a topic is covered, but then the guides relate to something else - in this case winding up ltd companies.
Still some use feeds, many thanks.

 

[Scalloway]

This is the law on dissolution where there is no partnership agreement, the Partnership Act 1890.

https://www.legislation.gov.uk/ukpg...ssolution-of-partnership-and-its-consequences

 

[The Resolver]

It is important to understand that once once partner issues a termination notice neither can then continue to run the business without the agreement of the other, If the other party wants to carry on after the partnership has dissolved on notice then he has to obtain the agreement of his partner to buying the assets from the partnership, the monies then becoming part of the liquid assets to be divided once creditors have all been paid.

I can guide you through this if you wish.

 

[Lisa Thomas]

The partners need to take insolvency advice if the business is insolvent...

 

[carl norman]

If you have a partnership agreement then the answer will be in the agreement
If not you revert to the partnership act 1890
If entered into for a fixed term then at the end of the fixed term. if not then it is a "partnership at will" and as such can be dissolved "by notice" That can simply be a letter to your partner stating you wish to dissolve the partnership and it takes effect from the date of notice.
I presume you are in England ? Because Scots law is slightly different regarding "separate legal personality".
You mention the partnership is insolvent ! Then depending on jurisdiction it may already be dissolved. As mentioned by Lisa Thomas above you need advice regarding insolvency.