Mrs A. Thompson –v- Scancrown Ltd, trading as Manors In a case that received widespread…
PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.
Clarity in business relations is always important, and making sure that what is thought to be agreed is made legally unequivocal is always good advice.
In a recent case, the son of a couple had joined them in their farming partnership. The partnership accounts showed the farm (which was legally owned by the parents) as an asset in the balance sheet.
The son claimed that the farm had become an asset of the partnership and he was therefore entitled to a legal interest in it. However, in the absence of any formal agreement to that effect, the court rejected his claim, concluding that the inclusion of the farm in the accounts was a simple error.
Says John Keeble, “It is often thought that when business relations are formed between friends or family members, there is no need for detailed attention to be given to the legal formalities. Nothing could be further from the truth. We can help you set up your business to ensure that the rights and responsibilities of participants are not the subject of uncertainty which may cause future problems.”