Click here to learn more about our revolutionary app or download directly from one of the sources below.
for the partnership shortfall. The partners may need to seek Individual Voluntary Arrangements, or some other solution to deal with this and their own debts.
[See ‘Administration’, ‘Individual Voluntary Arrangement’ and ‘Partnership’.]
A Partnership at Will is a form of business partnership where there is no fixed term agreed for the duration of the partnership. In other words, it is completely open ended.
A partnership will be deemed to be a Partnership at Will unless contrary evidence can be shown.
To show contrary intention there must be an express (in writing) or an implied (by conduct) agreement which shows that the partnership is not a Partnership at Will.
It can be difficult to reflect by conduct alone that the business is not a Partnership at Will. This is why a written partnership agreement is the preferred option. A written partnership agreement will override the default statutory provisions that would otherwise govern the partnership and provide all partners with much needed security.
Where a partnership is operating under the terms of a written partnership agreement, it is important that the agreement is regularly updated, otherwise the partnership is at risk of becoming a Partnership at Will.
[See ‘Partnerhip’.]
A Partnership Voluntary Arrangement (PVA) is a legal agreement made between business partners and their creditors. It is a formal process that can be initiated when a partnership is facing insolvency and is no longer able to pay the debts it owes to its creditors.
A PVA is a ‘voluntary agreement’ along the same lines as an Individual Voluntary Arrangement (IVA) in that it is a formal arrangement between creditors and the partnership, allowing a proportion of debt to be paid back over time.
