Lack of Clarity Over Farm Ownership Leads to Court Appearance
21st December 2016Back to articles
Clarity in business relations is always important, and making sure that what is thought to be agreed is made legally unequivocal is always good advice.
In a recent case, the son of a couple had joined them in their farming partnership. The partnership accounts showed the farm (which was legally owned by the parents) as an asset in the balance sheet.
The son claimed that the farm had become an asset of the partnership and he was therefore entitled to a legal interest in it. However, in the absence of any formal agreement to that effect, the court rejected his claim, concluding that the inclusion of the farm in the accounts was a simple error.
Jonathan Bailey, Head of Commercial says, "It is often thought that when business relations are formed between friends or family members, there is no need for detailed attention to be given to the legal formalities. Nothing could be further from the truth. We can help you set up your business to ensure that the rights and responsibilities of participants are not the subject of uncertainty which may cause future problems."
For information and advice on all your business needs contact us at any of our offices listed below:
Devizes - 01380 722311
Chippenham - 01249 478333
Marlborough - 01672 518620