1. Partnerships and Partnership Law

This chapter briefly defines and examines the essential principles of a partnership, highlighting the definition of a partnership as stated in the Partnership Act 1890. It also emphasizes the term ‘relation’ as given in the definition. A partnership is a relationship arising from a contract, which if established governs the rights and duties between the parties and their relationships vis-à-vis the rest of the society. Unlike a company, a partnership does not confer any limited liability on the partners. Putting all of this into consideration, the chapter analyses the basic concepts of limited liability partnerships (LLP) introduced into English and Scots law by the Limited Liability Partnerships Act 2000. The Act defines LLP as a hybrid between a company and partnership. The chapter concludes with overview of the development of partnerships, looking into the basis behind the Partnership Act of 1890, and some of the main issues that concern partnerships.