PARTNERSHIP PROPERTY

PARTNERSHIP PROPERTY

l  Sec 22 - all property, rights and interest originally brought into the partnership, or acquired, on account of the firm and for the purpose of the partnership and in the course of the partnership business are called partnership property and must be applied exclusively for the firm.

l  Partnership property can either be

l  Brought into the firm

l  Acquired on account of the firm

l  division of partnership property in a photography business.

MILES v CLARKE [1953] 1 All ER 779

Two men were partners at will in a photography business. M was a well-known photographer who brought with him his reputation, whereas C owned the lease of the studio and the equipment used in it. M also brought with him his existing negatives. Both partners , however, contributed to the stock in trade used in the business. The partners never agreed as to the formal listing of the assets, all that they agreed was to share the profits equally. On dissolution the question arose as to who owned  what.

The court refused to imply any terms as to change of ownership so that C retained the lease and equipment whilst M retained his previous goodwill and negatives. The consumable items of the stock in trade actually used in the business were to be regarded as partnership assets.

l  bought land from partnership profits therefore the land becomes partnership property

JONES v JONES [1870]  4 SALR 12

T and A were general dealers and out of the profits of the partnership they bought a shop in the business. The land was conveyed to them as tenants in common. T died intestate. Since the property had been acquired out of partnership profits and used for the partnership business, the evidence was that it was partnership property and not owned by them as individuals.