MAKERERE UNIVERSITY

SCHOOL OF LAW
LAW OF BUSINESS ASSOCIATIONS

THE LAW OF PARTNERSHIPS

COURSE OUTLINE
1.0 Background to Partnership Law

2.1 Organizational law

2.2 Partnerships and other forms of enterprise organization
2.3 History of Partnership Law
References
David Bakibinga, Partnership Law in Uganda (Law Africa, 2011), Chapter 1.
William T. Allen and Reinier Kraakman, Commentaries and Cases on the Law of
Business Organization, (Aspen Publishers, 2003). Chapter 1 (Introduction to the law of
enterprise organization).

2.0 Definition and Nature of a Partnership

2.1 Definition of a partnership (s. 2, 34(1)(b))

i)Palter V Zeller (1997) 30 0R (3d) 796
ii)Henshaw v Roberts 1967 (1) ALR Comm. 5
iii) Miah & Others v Khan & Another [2001] 1 All ER 20
iv)Smith v Anderson (1880) 15 Ch D 247
v)Lang v James Morrison & Co Ltd (1912) 13 CLR 1
vi)Francis Sembuya v All Port Services (U) Ltd SCCA no. 6 of 1999
2.2 Determining the existence of a partnership (s.3)
i) Davis v Davis [1894] 1 Ch 393
ii) Cox v Coulson [1916] 2 KB 177
iii) Badeley v Consolidated Bank (1888) 38 Ch D 238
iv) Cox v Hickman (1860) 8 HL Cas 286
v) Walker v Hirsch (1884) 27 Ch D 460

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 vi) Stekel v Ellice [1973] 1 WLR 191
vii) Commissioners of Inland Revenue v Lebus [1946] 1 All ER 476
viii) Re Megevand; Ex. parte Delhasse (1878) 7 Ch. D 511
ix) Hawksley v Outram (1892) 3 Ch.D 359

2.3 Relations not considered partnerships (s.2(3))

2.4 Formation of a partnership

a) Formalities
b) Registration of partnership name (s.4)

2.5 Types of partnerships

2.6 Categories of partners

2.7 Nature of a partnership

i) Sadler v Whiteman [1910] 1 K.B 868
ii) Ali Salim Ngoni v Keneddy Ogero Mokaya [2006] eKLR
iii) Geoffrey Gateete, Angella Maria Nakigonya v William Kyobe SCCA No. 7
of 2005.
iv) Intercar (U) Ltd Vs. Spear Motors Limited HCT-00-CC-MA- 0704 of 2007
v) United Dominions Corporation Ltd v Brian Pty Ltd. and Others (1985) 157
CLR, 1.

References
David Bakibinga, Partnership Law in Uganda (Law Africa, 2011), Chapter 2.
Joseph H. Drake (1917), Partnership Entity and Tenancy in partnership: The
Struggle for a Definition, 15 Michigan Law Review, 609.
Judson A. Crane (1915), The Uniform Partnership Act: A Criticism, 28 Harvard Law
Review, 762.
William Draper Lewis (1916), The Uniform Partnership Act: A Reply to Mr. Cane’s
Criticism, 29 Harvard Law Review, 291.

3.0 Relations of Partners to Third Parties

3.1 Authority of partners and the principal-agent relationship

i) Bank of Australia V Breillat (1847) 6 Moo PC 152
ii) Re Agriculturist Insurance Co (Baird’s case) (1870) 5 Ch. D 725
iii) Cox v Hickman (1860) 8 HL Cas 286
iv) Polkinghorne v Holland (1934) 51 CLR 143

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 v) Mercantile Credit Co Ltd v Garrod [1962] 3 All ER 1103
vi) Dubai Aluminum Co. Ltd v Salaam [2003] 1 ALLER 97; [2002]3 WLR 1913
vii) Lal Sharma V Bush Mills (1957) EA 404
viii) Construction engineering ltd V Hexyl ltd (1985) 155 CLR 541

3.2 Power of partners to bind the firm (s. 6, 7)

3.3 Restriction on authority of partners (s.8)

Hamlyn v John Houston & Co. [(1903] 1 KB 81
3.4 Liability of partners (s. 9, 12, 13,14, 15, 16)
a) Joint and several liability
Kendal v Hamilton (1879) AC 504
b) Liability for contracts, torts and other wrongs
i) Dubai Aluminum Co. Ltd v Salaam [2003] 1 ALLER 97
ii) Arbuckle V Taylor (1815) 3 Dow 160
iii) Rhodes v Moules [1895] 1 Ch.D 236
iv) National Commercial Banking Corporation of Australia Ltd v Batty (1986)
60 ALJR 379
v) Martyn v Gray (1863) 143 ER 667
vi) Re Fraser Exp. Central Bank of London, [1892]2 QB 633
vii) Fox V Clifton (1830) 6 Bing. 776
viii) Tower Cabinet Co. V Ingram (1949) 2 KB 397
ix) Chotalal Samjee Viranin v Ahmed El Sayed El Babari (1962) LJR 139
c) Liability of incoming and outgoing partners (s. 20, 39)
Munn v Scalera 181 conn.527, 436 A.2d 18 (1980)

d) Admissions and representations by partners (s.17)

Francis Sembuya v All Port Services (U) Ltd SCCA no. 6 of 199
Reference
David Bakibinga, Partnership Law in Uganda (Law Africa, 2011) Chapter 3.

4.0 The Relationship between partners (s.30

4.1 Duties of Partners (s.30, 31,33)
i) Law v Law (1905) 1 Ch.D 140
ii) Bentley v Craven (1453)18 Bears 75
iii) Olson V Gullo (1994)113 DLR 42
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 iv) Ass v Benham [1891] 2 Ch. D 24
v) Dean v. MacDowell (1878) 8 Ch. D. 345
vi) R.W Panthirana v A. Panthirana (1967) AC 233
vii) Thompson’s Trustee in Bankruptcy v. Heaton [1974] 1 WLR 605; [1974]1
ALLER 1239
viii) Trimble v Goldberg (1906) AC 494

4.1 Rights of Partners (s.26)

i) Highly v Walker (1910) 26 TLR,685
ii) Byrne v Ried (1092) Ch. D 735
iii) Carmichael v Evans (1904) 1 Ch.D 486
iv) Re Garwood’s Trust (1903) Ch. D 236
v) Airey v Borham (1861) 54 ER 768
References
David Bakibinga, Partnership Law in Uganda (Law Africa, 2011), Chapter 4.
Partnership- Rights in Equity of Person Nominated for Firm Membership,

5.0 Partnership Property (s.22,23, 24, 25)

5.1 Property brought into the firm at its commencement

i) Pocock v Carter (1912) 1 Ch. D 663
ii) Miles v Clark (1953)1ALL ER 779,
5.2 Property acquired during the subsistence of the firm

5.3 Nature of a partner’s interest in partnership property

References
David Bakibinga, Partnership Law in Uganda (Law Africa, 2011), Chapter 4.
Burdick Francis M, Partnership Reality, 9 (1) Colombia Law Review, 197.
6.0 Dissolution of a partnership (s.34, 35, 36, 37)
6.1 Dissolution by expiration or notice
i) Moss v Elphick [1910] 1 KB 846
ii) Crawshay V Maule (1818) 36 ER 479
iii) Sobell vs Boston [1975] 2 ALL ER 282
iv) Bracewell v Griffiths [1865] ER 788

6.2 Dissolution by bankruptcy, death or charge

i) McLeod V Dowling (1927) 43 TLR 655
ii) Shah v Pattel and Others, CA no. 2 of 1984

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 iii) Re Bourne (1906) 2 CH. D 427

6.3 Termination of partnership by charging order

6.4 Dissolution by illegality

R. v Knupfer (1915) 2 KB 321

6.5 Dissolution by court for incapacity etc

i) Snow v Milford (1868) 16 WR 654
ii) Loscombe V Russell (1830) 3 Sim 8
iii) Anderson v Anderson (1857) 25 Beav. 190
iv) Floyd v Cheney (1970) 1 ALLER 446
v) Carmichael v Evans (1904) 1 Ch. D 486
vi) Payton v Mindham (1971) 3 All ER 1215
6.6 Rights and Obligations of Partners at Dissolution of the Partnership (s.39-46)
a) Notification
b) Continuing authority of partners for purposes of winding up
Re Bourne (1906) 2 CH. D 427
c) Partnership property at dissolution
References
Bakibinga, David, Partnership Law in Uganda (Law Africa, 2011), Chapter 5.

Gose, Gordon, The Charging Order Under the Uniform Partnership Act, 28 Wash. L.
Rev. 1 (1953).  Act, 28 Wash. L. Rev. 1 (1953). 

Smoot, Jeffrey L. , Judgement Enforcement Against Interests in Partnerships and LLCs

Rutledge Thomas E. and Wilson, Sarah Sloan, An Examination of the Charging Order
under Kentucky’s LLC and Partnership Acts, 99 Kentucky Law Journal, 85.

7.0 Limited Partnerships

7.1 History of Limited Partnerships
7.2 Composition of limited partnerships (s.47)
7.3 Nature of limited partnerships
7.4 Registration of limited partnerships (s.48-50)

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 7.5 Management limited partnerships (s.52)
7.6 Winding up limited partnerships (s.53)
7.7 Conversion limited partnerships (s.56)

8.0 Limited Liability Partnerships

8.1 History of Limited Liability Partnerships
8.2 Nature of limited liability partnerships
8.4 Formation of limited liability partnerships
8.5 Relationship of Partners in a limited liability partnership

References
Bakibinga, David, Partnership Law in Uganda (Law Africa, 2011), Chapter 8.
Larry E. Ribsteint, Fiduciary Duties and Limited Partnership Agreements, 27 Suffolk
University Law Review, 927(2004).
Keating et al., Limited Liability Partnerships: The Next Step in the Evolution of the
Unincorporated Business Organization, 51 The Business Lawyer, 147(1995).
Young, Simon, Limited Liability Partnerships- A Chance for Peace of Mind, 21 Business
Law Review, 257(2000).

Bibliography
Allen T. William and Kraakman Reinier, Commentaries and Cases on the Law of
Business Organization, New York: Aspen Publishers, 2003.
Bakibinga David, Partnership Law in Uganda, Nairobi: Law Africa, 2011.
Klein A. William and Coffee Jr. C. John, Business Organization and Finance: Legal and
Economic Principals, New York, Foundation press, 2004.