Determining the result of the changeover

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Joe is a solicitor employed by Bloggs & Co. There are two partners, Harry and Ian. Ian is intending to retire and it has been decided that Joe should replace Ian as a partner, with Harry carrying on as a partner. What steps each should take to protect himself as a result of the changeover.

The second question is: Cliff has been asked by his friends, Don and Eric, to help them set up an antiques business. Don and Eric want Cliff to lend them £5,000 and they say they will give Cliff one-third of the profits instead of interest on the loan. What are the dangers to Cliff in such an arrangement and how can he overcome them?

Also, Fred is a new partner in Gee & Co, a firm of interior designers. In discussion at a recent meeting of the partners Fred was told that the office building at which the firm is based is not partnership property. (a) what is meant by the expression 'partnership property'; (b) what effect it will have on him if the office building is not partnership property; (c) how it can be that an asset which is used in the firm's business is not in fact partnership property.

Reference no: EM132349814

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