Are you involved in a business partnership gone south? What can you do? What does Texas law provide?
The history of partnership law in Texas is deeply interwoven with the development of the state's economic and legal systems. The principles of partnership law in Texas have been defined and refined over many years, and the story of these changes reflects the evolution of business relationships and regulatory demands.
Early History (19th Century): Partnership law in Texas originated in the 19th century, following the state's admission into the Union in 1845. Early Texas partnership law was largely derived from English common law, similar to other U.S. states. During this time, partnerships were relatively simple, informal agreements between two or more individuals. The law recognized only "general partnerships," where all partners shared equal liability.
The Texas Revised Civil Statutes (1879): The first formal codification of partnership law in Texas occurred with the passage of the Texas Revised Civil Statutes in 1879. This codification included provisions related to partnerships, solidifying basic principles such as mutual agency, joint liability, and fiduciary duty among partners.
Texas Uniform Partnership Act (UPA, 1961): In 1961, Texas adopted the Uniform Partnership Act (UPA), a model law developed by the National Conference of Commissioners on Uniform State Laws. The UPA aimed to standardize and simplify partnership laws across states. It introduced significant innovations, including the differentiation between general partnerships (where all partners share liability) and limited partnerships (where some partners have limited liability).
Texas Revised Partnership Act (TRPA, 1993): Recognizing the need for more comprehensive and flexible laws to cater to the growing complexity of business structures, Texas adopted the Texas Revised Partnership Act in 1993. The TRPA introduced the concept of limited liability partnerships (LLPs), which allowed partners to limit their personal liability for the debts of the partnership.
Business Organizations Code (BOC, 2003): In 2003, the state enacted the Texas Business Organizations Code (BOC), which consolidated the laws related to different types of business entities, including partnerships. The BOC further refined the concepts and principles of partnership law, including provisions for partnership formation, operation, and dissolution.
Recent Developments (2010s-2020s): In the 2010s and 2020s, there have been ongoing adjustments to partnership law in Texas, mainly to address new forms of business and to incorporate elements of federal law. These changes have sought to balance the need for business flexibility with protections for investors and the public.
The history of partnership law in Texas reflects the balance between business needs and public protection, and the legal system's ongoing attempts to reconcile these two priorities in a changing economic landscape.
When it counts enough to be in court, you need a lawyer who is experienced, tenacious, dependable, and who will fight for you and your company.
The firm has more than 25 years of experience representing people and businesses in lawsuits. If you think you have a dispute with your business partners, or if someone claims you did not honor your promises, we may be able to help. Give us a call to schedule an appointment. The firm only represents clients based upon a signed, written agreement. In some circumstances, we offer a free, no obligation, initial, in-office consultation.