I've had a number of queries recently about agricultural
tenancies where a partnership is the tenant rather than an
individual. This can often give rise to problems and I thought that
it would be worthwhile spending some time looking at some of the
issues that can arise and how they might be resolved.
First of all, in Scots law, a partnership is a separate legal
person in its own right quite distinct from the individual partners
in the partnership. It is perfectly competent for a partnership to
be a tenant in an agricultural tenancy.
Family farming partnerships are one of the most common means of
family farming businesses organising their affairs and accordingly,
tenancies in favour of such a family farming partnership are not
uncommon. There can be serious consequences for the tenant however
where the tenancy is a partnership. The danger occurs when there is
a change in the identity of the partners. The normal rule that
applies is that if there is a change, for