Property bought with firm money - PA 1890 s. 21
Unless a contrary intention appears, property bought with firm money is deemed bought on account of the firm - PA 1890 s. 21
Unless the contrary intention appears, property bought with money belonging to the firm is deemed to have been bought on account of the firm.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This provision creates a presumption that any property purchased with partnership funds belongs to the partnership. 'Firm' means the partnership. 'Deemed' means treated as true unless evidence shows otherwise.
The presumption applies unless a 'contrary intention' appears – for example, if the partners agreed the property was for one partner individually, or the circumstances clearly show a different ownership. The provision does not require the property to be used for the partnership business; it is the source of funds that matters.
When it applies
- A partner uses the partnership's bank account to buy a delivery truck. The truck is deemed partnership property even if the title is in that partner's name alone.
- Two partners buy office furniture with money from the partnership current account. The furniture belongs to the firm.
- A partner buys a laptop using a cheque from the partnership account but later claims it is for personal use. The provision deems it partnership property unless the contrary intention is shown.
What this section does not say
- This provision does not determine ownership of property bought with a partner's personal money, even if used for partnership business.
- It does not cover disputes about reimbursement when a partner uses personal funds to buy partnership property.
- It does not address the conversion of land held as partnership property into personal estate (that is covered by s.22).
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This page reproduces the text of PA 1890 s. 21 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.