Partners and their Relations [Sections 22 — 25]

Four classmates start a coaching venture. They never discuss who will be paid a salary, who can veto a new partner, or what happens if one of them moves abroad. Two years later the venture makes money and the arguments begin. In an ordinary group of friends you would sort it out by shouting. In an LLP, sections 22 to 25 of the Act say who is a partner, what governs their relations, and what happens when someone leaves, and the First Schedule fills in the silences.

In two minutes

Partners' mutual rights and duties in an LLP are governed by the LLP agreement; where the agreement is silent the First Schedule applies, and any person joins or leaves under the agreement with notices filed with the Registrar.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.