Partnership Disputes: Legal Insights And Resolutions

Partnerships can be established formally through a partnership agreement or informally under the Partnership Act 1890. While the ease of informal formation is often advantageous, it is also a common source of partnership disputes.

Challenges frequently arise when individuals find themselves party to a partnership without any formal written agreement, often without even realising they are in a partnership. As a result, partnership disputes can be notoriously complex to resolve. Below, we address some frequently asked questions related to partnership disputes.

What is a Partnership?

A partnership arises when a relationship subsists between persons carrying on a business in common with a view to profit (section 1, Partnership Act 1890). Partnership disputes are therefore common in business arrangements, especially when expectations, goals, responsibilities, or liabilities are not codified in a partnership agreement or are otherwise unclear.