Who can use this Partnership Agreement?
This Partnership Agreement is suitable either for the establishment of a new partnership or for formalising an existing partnership of three partners.
What is a Partnership Agreement for?
To record the terms agreed between the partners. You need this if you want to establish a three-person partnership, or formalise an existing partnership, and want to set out your relationship to the other parties, your mutual obligations, and the rules governing the conduct of the partnership business.
Unlike a limited company, a partnership has no articles of association so the way it is owned and managed needs to be agreed by the partners.
What are the main points for a partnership agreement?
- Name and business of partnership
What is the partnership called and what is the main purpose of the business
- Partnership capital
What is the capital of the partnership and how much is contributed by each partner
- Profits and Losses
What share of profits and losses will each partner have. (Capital and profit shares are not always the same)
How much can each partner draw from the income each month on account of their share of profits.
- Decision making
Rules for partnership meetings and voting rights of partners
Arrangements for annual and management accounts, who has signing rights on the bank account etc.
- Introduction of new partners, retirement and removal of existing partners
How are these decisions reached, notice periods and how are capital and profits paid out to former partners
Rules preventing a partner or former partner from competing with the firm.
For more guidance see our Blog article
What detailed terms does this Partnership Agreement contain?
This fourteen page document contains 24 clauses covering
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When I download the document, can I change it and/or use it more than once?
Yes. All ContractStore’s templates are in MS Word and can be used more than once. As well as filling in the details – names and addresses of the partners, capital and profit shares etc., – you can alter or add to it if you need some special terms.
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