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JimLawyer
JimLawyer, Solicitor
Category: Law
Satisfied Customers: 14788
Experience:  Senior Associate Solicitor
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A partnership is a legal entity so A + in partnership is a

Customer Question

A partnership is a legal entity so A + B in partnership is a responsible entity - if A retires and is replaced by C is the original legal entity the same or has it become a new partnership ? Does the legal responsibility following the original partnership cease at the date that partnership changes
JA: Where is this? It matters because laws vary by location.
Customer: Wales
JA: What steps have been taken so far?
Customer: I am not sure - what steps should have been taken ?
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: Basically this is a query about retaining files because of liability
Submitted: 16 days ago.
Category: Law
Expert:  JimLawyer replied 16 days ago.

Hello, this is Jim and welcome to JustAnswer. I will be the lawyer working with you today.
Sorry to hear of the issue. I will set out my written answer shortly.

Expert:  JimLawyer replied 16 days ago.

It depends what the partnership agreement says, if there is one. If not, there is still a partnership which is implied, under the Partnership Act 1890.
That means if one partner resigns (with written notice), the partnership is dissolves - so your scenario would mean that B and C would then form a new partnership and a new entity so to speak. So yes, legal responsibility would stop at the date partner A retires (the date of their letter for example) as that date would then dissolve the partnership.
Partner B can continue to run the business - they would revert to a sole trader status, until they agree to partner up with the new person - in which case the date of that new agreement is the date the new partnership forms. Partner B may still be liable for any business debts, but not Partner A as they retired and if there is no written partnership agreement, partner B would continue to be liable (and when C joins, C is also then liable). As both are liable for 50% of the costs and they also take out 50% of the profit share too.

Expert:  JimLawyer replied 16 days ago.

I hope this helps and answers the question - my goal is to ensure you are happy with the answer and have the information you need. If you have any follow up questions then please let me know. I will reply as soon as I can to help with any further queries.

Many thanks,
Jim

Expert:  JimLawyer replied 16 days ago.

Please let me know if the answer helped or if you need me to cover anything else?. I am happy to clarify the answer or if you have any follow up questions. If so, I’d be grateful if you would let me know. I am free most days, including weekends, so feel free to ask me anything you are unsure of.

Best wishes,

Jim

Customer: replied 16 days ago.
Hello Jim - thank you for your answer. I have actually immediately cancelled my "subscription" as I wasn't aware there was one. I have to say that I feel that the website is working unethically as the headline all the way through was £5 to get your question answered not £55. I could easily have asked our accountant the same question (and in fact did) and got the same answer which is reassuring and what I thought in the first place. I realise that my issue is not with you and thank you for your help.
Expert:  JimLawyer replied 16 days ago.

Thanks, ***** ***** lawyer I just answer legal questions and not membership enquiries - I am independent user of the site just like yourself.

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