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Partnership Law Act 2019

Financial reporting, dissolution of partnership, and other miscellaneous provisions - End of partnership - How partnership may end

68: Partnership that continues after end of fixed term

You could also call this:

"When partners keep working together after their set time is up"

If you and your partners start a business for a set amount of time and keep working together after that time is up without making a new agreement, some special rules apply. You and your partners will keep the same rights and duties you had at the end of the set time, as long as they fit with how a partnership works when there's no set end date.

The law assumes you're still in a partnership if you or the partners who usually did the work during the set time keep running the business without sorting out the partnership's money matters. This means you're carrying on as partners even though you didn't officially agree to it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206085.

Topics:
Business > Industry rules
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"How to stop being partners when you didn't set a time limit"

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"Partnership ends when a partner dies or runs out of money"

Part 4Financial reporting, dissolution of partnership, and other miscellaneous provisions
End of partnership: How partnership may end

68Partnership that continues after end of fixed term

  1. This section applies if a partnership that was entered into for a fixed term is continued—

  2. after the term has ended; and
    1. without any new express agreement.

      1. The rights and duties of the partners remain the same as they were at the end of the fixed term (to the extent that those rights and duties are consistent with the features of a partnership at will).

      2. A partnership is presumed to be continued if the business is continued—

      3. by the partners or by those partners who habitually acted in the business during the fixed term; and
        1. without any settlement or liquidation of the partnership’s affairs.

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