If a partner mortgages his own share in a partnership1, the mortgagee takes subject to equities subsisting between the partners2.
An assignee of a share in a partnership is not, however, bound by a subsequent agreement between the assignor and another of the partners for the sale to that other partner of that share, even though that agreement is made in good faith3. A mortgage of a share in a partnership is not a mortgage of chattels but of a chose or thing in action, and need not be registered as a bill of sale4.
A mortgagee of a partner's share
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234