News and Publications | News Commentary

NHSLA confirms that PMS contracts cannot be varied without written consent

In a recent appeal we took to the NHSLA, the authority confirmed our view that a PMS contract cannot be varied to accommodate new or retiring partners without the written consent of all the current contract signatories. This is regardless of the status of the partnership, as a PMS contract cannot be held by a partnership. As a consequence, a PMS partnership dispute can have very unpredictable consequences since a partner can be validly expelled from the partnership but still continue to ‘own’ a share of the PMS contract. As ever, the best advice is to have a well drawn up partnership agreement which caters for this particular scenario.

 

Posted on July 10th 2011 in News and Publications, News Commentary


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