7BR’s Jeffrey Jupp and Mike Cain of Leigh Day have written an article which has been published in ELA Briefing.

How does s.46(6)(b) EqA 2010 operate when case law provides that the doctrine of acceptance of a repudiatory breach of contract has no application to partnerships
and LLPs?

Partnerships are founded on a contract, oral or written. LLPs are usually founded on an agreement of the kind provided for in s.5 of the LLPA and in the absence of such an agreement, default rules, set out in reg 7 of the LLP Regulations, apply. Case law has established that because of the nature of partnership and LLP agreements, partners and LLP members cannot be constructively dismissed. This is because, it is said, that to allow this would have the effect of dissolving the partnership or bringing the LLP agreement to an end. However, s.46(6)(b) EqA 2010 suggests partners and LLP members can be constructively dismissed. This article suggests a way in which these two different positions can be reconciled.

The full article can be viewed here. 


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