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Partnership Agreement

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Partnership Agreement

A Partnership Agreement allows you to structure your relationship with your partners and confirm such things as:

Also important are the rules for when a partner leaves and the terms of this should be incorporated into any Partnership Agreement. A Partnership Agreement should set out how the partnership to be brought to an end by any partner, e.g. by giving written notice or by the happening of a specific event, such as the retirement, expulsion, death or bankruptcy of a partner.

If you and your partners become deadlocked on an issue there should be a way in which to resolve this efficiently and swiftly. It is then crucial that a partnership agreement provides for alternative dispute resolution, such as mediation or arbitration.
A Partnership Agreement should set out how the assets used by the partnership are to be treated. For example are the assets the property of an individual partner, or are they to be treated as the property of all the partners.
The partnership agreement should specify how much capital each individual partner is expected to provide for the business initially and in what proportion each particular partner will be expected to contribute towards any additional capital funding requirements.
Without a partnership agreement in place there is room for uncertainty and disagreement as to how the Partnership can operate and are often a  for expensive disputes. Money invested in a Partnership Agreement at the start of a business is rarely wasted.
At Guthrie & Co Lawyers we are highly experienced in preparing Partnership Agreements ranging from the very straightforward to the more complex.

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