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JimLawyer
JimLawyer, Solicitor
Category: Law
Satisfied Customers: 6070
Experience:  Senior Associate Solicitor
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That would be very helpful Assistant: Where is this? It

Customer Question

Hi yes that would be very helpful
Assistant: Where is this? It matters because laws vary by location.
Customer: In London
Assistant: What steps have been taken so far?
Customer: I was just wondering if a 50/50 business partner is allowed to set up a competing business with our current business within 2 miles from our current one. And if this is a breech of partnership obligation
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: And she wants to resign a director, what if I also resign what happends to the buisness if she isn’t agreeing on dissolving it
Submitted: 13 days ago.
Category: Law
Expert:  Nicola-mod replied 13 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Expert:  Joy Nicholas replied 13 days ago.
Hi, thank you for your message. Can I confirm is there a contract in place that explains this?
Customer: replied 13 days ago.
We haven’t signed a partner agreement
Expert:  Joy Nicholas replied 12 days ago.
Hi, sorry I will need to opt out as I do not do phone calls. Another lawyer will be able to help you.
Expert:  JimLawyer replied 11 days ago.

Hello, my name is Jim and I am a qualified lawyer happy to help you today.

As there is no partnership agreement in place, implied terms of the partnership are then imposed by statute under the Partnership Act 1890.

What this means is that in the absence of anything written, you share 50% of the profits and are also jointly liable for any debts. It means if one of you wants to leave the partnership, you can do so and that then dissolves the partnership automatically. You are then both left with having to tie up loose ends of the business which means settling any debts, taxes, wages, and so on.

Unfortunately as there is nothing written then there is nothing to stop either of you from setting up in another business once you leave the partnership. That is why it is very important to have a written partnership agreement with restraint of trade clauses and so on to protect the business if someone leaves.

I hope this helps - if you can please accept the answer and give me a 5 star rating (the top right of your screen & then click “submit”), I can answer follow up Q&A's at no extra charge and I will be credited for helping you today.

Many thanks,

Jim

Expert:  JimLawyer replied 11 days ago.

I hope I have helped.

Before you go please don't forget to rate the answer by clicking the 5 stars on screen and clicking “submit”.

Many thanks,

Jim