Two brothers farmed in partnership. The partnership was dissolved in 1998 on the death of one brother, but the business continued. The farm was affected by the foot and mouth outbreak in 2001, and the second brother died shortly after. Compensation became payable, and the two sets of executors sought directions as to how the compensation was to be accounted for.
Held: S42(1) had no application. The money constituted a post cessation capital receipt, and could not be deemed to have been part of profits. As such it fell to be distributed under s24(1).
Judges:
Brooke, Chadwick, Scott Baker LJJ
Citations:
Times 03-Mar-2004, Gazette 11-Mar-2004, [2004] EWCA Civ 170
Links:
Statutes:
Partnership Act 1890 24(1) 42(1)
Jurisdiction:
England and Wales
Citing:
Cited – Popat v Shonchatra CA 25-Jun-1997
Partnership assets, both as to capital and revenue were to be divided equally between the partners in the absence of an agreement otherwise even though they had made an unequal contribution. . .
Lists of cited by and citing cases may be incomplete.
Wills and Probate, Company
Updated: 10 June 2022; Ref: scu.194274