Q&As

Can land be held on trust for a partnership by a person who has yet to be admitted as a partner?

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Produced in partnership with Lynne Counsell of 9 Stone Buildings
Published on LexisPSL on 19/05/2020

The following Private Client Q&A produced in partnership with Lynne Counsell of 9 Stone Buildings provides comprehensive and up to date legal information covering:

  • Can land be held on trust for a partnership by a person who has yet to be admitted as a partner?
  • Partnership property
  • Partnership land
  • Trust of partnership land

Partnership property

A partnership will normally be governed by the deed of partnership or partnership agreement (see Precedent: Partnership agreement). In the absence of any stipulations about partnership property in the partnership deed, the provisions of the Partnership Act 1890 (PA 1890) will apply. For further information, see: General partnerships—overview.

PA 1890, s 20(1) specifies two types of partnership property, namely all property and rights and interests in property:

  1. originally brought into the partnership stock or

  2. acquired, whether by purchase or otherwise, on account of the firm, or for the purposes and in the course of the partnership business

Unless the contrary intention appears, property bought with money belonging to the firm is deemed to have been bought on account of the firm. Partnership property must be held and applied by the partners exclusively for the purposes of th

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