A Partnership Agreement can be an invaluable means of expressing the Partners’ intentions for a business. In the absence of a formal Partnership Agreement to the contrary, the Partnership Act 1890 sets out default provisions which apply to partnerships. These default provisions include:
Our expert team can advise on an extensive range of banking law areas including the following:
- Partners are entitled to share equally in the capital and profits of the firm
- Partners will be jointly liable to contribute equally to any losses of the firm
- Every Partner can take part in the management
- The consent of all the Partners is needed to admit new Partners
- A Partnership, for no fixed period, can be determined on giving notice to all the other Partners
- A Partner is not entitled to be paid for acting in the business
For most businesses, these default provisions do not represent the intentions of the Partners or how they wish to run their business. Unfortunately, it is often only when a dispute arises between the Partners that the value of setting everything out in an Agreement from the outset becomes apparent.
What areas are covered by a Partnership Agreement?
The key areas we can explore with you are your intentions in respect of profit sharing, duration, termination, the exit and expulsion of Partners, and how losses are to be divided between the Partners.
How We Can Help
Our experienced Business & Commercial Solicitors can advise and draft a Partnership Agreement which accurately represents the intentions of the Partners of your business. We can draft your Agreement to ensure the default provisions are excluded or modified and suggest points to be included to achieve a true reflection of the Partners’ intentions, rather than the standardised default provisions.
To speak to our Business team, call us now on 0208 437 0731 or request a call back and we will call you back.