Q&As

In the absence of a partnership agreement, on the death of a partner in a two-partner partnership, who has authority to transfer the legal title in any non-real estate partnership assets?

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Published on LexisPSL on 19/03/2018

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • In the absence of a partnership agreement, on the death of a partner in a two-partner partnership, who has authority to transfer the legal title in any non-real estate partnership assets?

The Partnership Act 1890 (PA 1890) provides that subject to any agreement between the partners, every partnership is dissolved as regards all the partners by the death or bankruptcy of any partner (PA 1890, s 33(1)). As there is only one surviving partner, the partnership cannot continue and it will be dissolved as from the date of the partner’s death.

PA 1890, s 20(1) provides that all property and rights and interests in property originally brought into the partnership stock or acquired, whether by purchase or otherwise, on account of the firm, or for the purposes and in the course of the partnership business, is ‘partnership property’ and must be held and applied by the partners exclusively for the purposes of the partnership and in accordance with the partnership agreement.

Whether particular property constitutes partnership property may be specified in the partne

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