Definition of firm and firm-name PA 1890 s. 4
PA 1890 s. 4 defines "firm" and "firm-name" for partners, specifying that in Scotland a firm is a legal person distinct from its members.
Persons who have entered into partnership with one another are for the purposes of this Act called collectively a firm, and the name under which their business is carried on is called the firm-name. In Scotland a firm is a legal person distinct from the partners of whom it is composed, but an individual partner may be charged on a decree or diligence directed against the firm, and on payment of the debts is entitled to relief pro ratâ from the firm and its other members. In relation to a limited partnership registered under the Limited Partnerships Act 1907, subsection (2) applies only if the limited partnership was registered by the registrar for Scotland.
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 establishes statutory terms for partnerships under the Act. Persons who have entered into a partnership are referred to collectively as a firm, and the name under which their business is carried on is called the firm-name.
In Scotland, a firm is defined as a legal person distinct from the partners who compose it. An individual partner may be charged on a decree or diligence directed against the firm, and upon paying the debts, that partner is entitled to pro ratâ relief from the firm and its other members.
Regarding limited partnerships under the Limited Partnerships Act 1907, subsection (2) applies only if the entity was registered by the registrar for Scotland.
When it applies
- Applying statutory definitions of firm and firm-name to partners trading together under a joint name.
- A Scottish partner seeking pro ratâ reimbursement from co-partners after paying a debt enforced against the firm.
- Checking if a limited partnership registered under the Limited Partnerships Act 1907 qualifies for the Scottish rule.
What this section does not say
- The power of a partner to bind the firm in ordinary business transactions, which is governed by pa1890s.5.
- Rules for the final distribution of assets when settling accounts, which are found in pa1890s.44.
- Grounds for seeking court dissolution of a partnership, which are covered under pa1890s.35.
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This page reproduces the text of PA 1890 s. 4 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.