I have 2 clients who decided to work in partnership in a hair and beauty salon. Against my advice, they never wrote a partnership agreement. Now, you've guessed it, the relationship has broken down and there are complications arising.
Both individuals had signed a lease agreement in joint names for a salon, the lease of which is coming to an end at the end of November. They have taken on a new lease in new premises, again in joint names. Partner A originally said that they would sign a separate lease in the old salon just in her sole name. Partner B said that was fine and that she would take on the new salon and get it transferred into her own name. They would then dissolve the partnership and continue as sole traders.
Now partner A is saying that she does not want to work in the old salon and will instead work in the new salon (don't forget this is in joint names) alongside partner B. This is obviously going to cause friction and I have been asked to give advice as to how to resolve the situation.
In the absence of a Partnership Agreement, can partner B simply say that the partnership has now ceased, close the partnership bank account and put up with the inconvenience of them working in the same premises?
Any suggestions would be most welcome.