- Level 5, Evandale Place, 142 Bundall Road, Bundall, QLD, Australia
Partnership Dispute
Gold Coast business lawyers
If you are dealing with a business partnership dispute, QBM Lawyers can assist.
We advise on partnership disputes and disagreements, helping to resolve conflicts, renegotiate terms and protect your commercial interests.
Our focus is on achieving practical outcomes while maintaining business relationships where possible.
What is a partnership?
A partnership is generally an arrangement between two or more people or entities to carry on a business, and in some cases, to own property.
Partnerships can exist between companies, trustees, individuals, or a combination of these. In some cases, an agent may be appointed to act on behalf of the partners or hold property.
A partnership is different from a company structure. In some situations, a “quasi partnership” may arise where key individuals are integral to the business. In other cases, rights are derived from share ownership or directorship, and a partnership does not exist.
Partnership agreements may be written, but they can also be formed through verbal agreements, written correspondence, or conduct.
Rules to assess if a partnership exists
In Queensland, the Partnership Act 1891 sets out the rules for determining whether a partnership exists.
Owning property together does not necessarily establish a partnership, even where profits are shared. Similarly, sharing gross returns does not of itself create a partnership.
Receiving a share of business profits is generally an indicator that a partnership exists, subject to some exceptions.
Partners are jointly responsible for the partnership’s debts and obligations, as well as any wrongdoing under sections 12 and 13 of the Partnership Act. For this reason, trust between partners is essential and forms the basis of their fiduciary duties.
Partnership Disputes
Written partnership agreements typically address key issues, including when a partnership may end, what occurs on termination, and how disputes are resolved.
Partners owe each other fiduciary duties, requiring them to act honestly and in good faith. This means they must not take advantage of the partnership or use it for personal benefit without full consent. In some circumstances, even with consent, certain benefits may not be permitted.
Many partnership disputes arise where a partner fails to comply with these fiduciary obligations.
Example of partnership disputes
If a partner takes a benefit or opportunity that properly belongs to the partnership, this may constitute a breach of duty. For example, if a partner in a distribution business secures exclusive rights through a related entity, this may amount to taking a partnership opportunity. In such cases, both the partner and any associated entity may be liable.
Similarly, using information obtained through partnership discussions for personal gain may amount to a breach. For example, where one party uses confidential client or pricing information to compete directly with the partnership, this may give rise to a claim.
Fiduciary duties
- A partner borrows against property held in the partnership’s name without the consent of the other partners;
- A partner uses partnership funds for personal expenses;
- A partner uses partnership property for personal benefit without permission;
- A partner receives partnership property and fails to account to the other partners.
Breaches of fiduciary duties often begin as minor issues but can escalate into significant financial disputes if not addressed. They can also damage the relationship between partners and lead to formal disputes.
These issues can often be resolved with the assistance of an experienced partnership dispute lawyer.
Contact QBM business partnership dispute lawyers
QBM Lawyers has extensive experience in partnership disputes and their resolution. For advice, contact Justin Mathews at justinm@qbmlaw.com.au or Peter Muller at peterm@qbmlaw.com.au
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Frequently Asked Questions
We provide legal services across commercial litigation, property law, business and corporate law, construction law, insolvency, and wills and estates. Our experienced legal team handles both complex disputes and advisory matters for individuals and businesses.
Yes, we offer initial consultations to understand your situation and provide clear, practical advice. You can book a consultation through our website or contact our office directly.
Our firm has decades of experience representing businesses, property developers, and individuals across Queensland. Our senior lawyers have extensive expertise in litigation and commercial law.
Please bring any relevant documents, such as contracts, agreements, court notices, or correspondence related to your matter. This helps our lawyers assess your situation more efficiently.
Yes, we handle a wide range of commercial and business disputes, including contract disputes, shareholder disputes, and business litigation. We provide clear, strategic advice tailored to each client’s needs.
Our legal fees depend on the complexity and nature of your matter. We provide clear, transparent fee structures and discuss costs upfront so you know what to expect.
Yes, we assist with property transactions, conveyancing, development matters, and property disputes for individuals, investors, and businesses.
Timeframes vary depending on the type and complexity of the matter. Some matters resolve quickly through negotiation, while others may require court proceedings. We keep clients informed at every stage.
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For over 40 years, QBM Lawyers has delivered effective legal solutions for clients across the Gold Coast.
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- +61 755 74 2600
- PO Box 6344, Gold Coast Mail Centre, Bundall QLD 9726
- Level 5, Evandale Place, 142 Bundall Road, Bundall, QLD, Australia
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