Partnership Agreements

Partnership deeds/agreements (including LLP’s)

s.24 of the Partnership Act 1890 contains a number of provisions concerning the running of the partnership that will be implied into a partnership agreement in the absence of express provision. However, the Act is limited in scope and inevitably cannot do more that treat all partners equally.

This may not be relevant for all partnerships which is why it is prudent for partners to have their own partnership agreement in place which can govern the relationship between partners in line with how the relationship actually is. Typical clauses in a partnership agreement include:

  • Name of the partnership;
  • Contributions to the partnership;
  • Allocation of profits, losses and draws;
  • Partners authority;
  • Partnership decision making;
  • Management duties;
  • Admitting new partners;
  • Withdrawal or death of a partner;
  • Resolving disputes.
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