Partnerships Act

39. Protection for property acquired after break-up.

Edition: 2022-12-31 · In force

39. Protection for property acquired after break-up.

(1)In this section, "successor partnership" means a partnership—

(a)formed on or after the break up of a partnership which has not been dissolved; and

(b)consisting of at least one person who was a partner in the former partnership.

(2)The title to the property acquired by a person and that of any person to whom the property is subsequently transferred shall not be challenged on the ground that the property was in fact partnership property of a former partnership.

(3)Subsection (2) applies if a successor partnership purports to transfer property to another person who—

(a)acts in good faith;

(b)provides valuable consideration; and

(c)has no notice that the property is partnership property.

(4)For the purposes of this section, the transfer of property to a person includes the grant to the partner of an interest created out of the property.

Winding up and dissolution of partnership

← Previous provision Next provision →

Source: Kenya Law