Western Australia Act
Partnership Act 1895 (WA)
Partnership Act 1895 sets default rules for partnerships in Western Australia.
Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.
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Quick read
- Partnership Act 1895 sets default rules that can apply when people carry on business in common with a view to profit.
- For small businesses, the danger is accidentally relying on default partnership law instead of a clear written agreement on profit share, authority, exits, debts and disputes.
Likely relevant if
- Partners carrying on business together in Western Australia
- Professional practices, consultants, family businesses and joint ventures
- Founders operating before a company structure is set up
Check first
- Document partner contributions, authority, profit share, drawings and decision-making.
- Make clear who can bind the partnership to contracts, leases, loans or employment decisions.
- Plan exits, retirement, death, disputes and buyouts before the relationship breaks down.
What happens if you get it wrong
Penalties & enforcement
Partnership risk is usually commercial: personal liability, partner disputes, debt exposure, tax problems and uncertainty about who owns business assets.
Enforced by Courts, tribunals and agencies applying partnership law in the relevant dispute
When this shows up in real life
Two founders start trading together
Before revenue grows, decide whether the arrangement is a partnership, company or another structure and document ownership clearly.
One partner signs a supplier contract
Check whether they had authority to bind the partnership and whether the contract fits the ordinary course of the business.
A partner wants to leave
Use the agreement if there is one. If not, default partnership rules can decide notice, dissolution, accounts and asset treatment.
Plain-English glossary
- Partnership
- A relationship between people carrying on business in common with a view to profit.
- Partner authority
- The ability of one partner to bind the firm when acting in the ordinary course of partnership business.
- Dissolution
- The ending of the partnership relationship, which can trigger asset, debt and accounting issues.
Common questions
Can I be in a partnership without a formal partnership agreement?
Yes. A partnership can arise from how the business is carried on. A written agreement helps avoid default rules filling the gaps.
Does a partnership protect personal assets?
Not in the same way as a company. Partners may be personally exposed for partnership obligations, so structure and insurance matter.