Partnership Agreement 3 Partners – 3 Way Template (A149)

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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.

For a 2 partner agreement, use our document A148 .    For 4 or more partners use our document A150 . If you want a limited liability partnership (LLP) Agreement, use our document A152

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)
  • Drawings
    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
  • Accounts
    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
  • Restrictions
    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

  • definitions and interpretations
  • establishment of partnership
  • principal office and property
  • capital
  • profits and losses
  • drawings
  • partnership loans
  • conduct of partnership business
  • good faith
  • restriction on partners
  • partnership bank
  • accounts
  • holidays
  • insurance
  • termination, retirement and death
  • consequences of retirement, expulsion or death
  • former partner’s share
  • dissolution
  • restriction of former partner
  • notices
  • disputes and governing law
  • scope of the agreement
  • severability
  • waiver

Our contracts all  come with detailed Explanatory Notes that you will receive when you download the document.

If you have any questions about a contract and/or want to see these Notes before you buy, please let us know by using our contact form

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.

For more information watch the video on this page of our website or see our FAQs

Legal assistance.

ContractStore supplies templates and is not a law firm.  But all our templates are written by experienced lawyers.  So, we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. For more information see our Legal Services page.

 And if you want to contact us see our Contacts page


If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form

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