What Needs To Be Included In A Partnership Agreement?

A partnership agreement is a critical document that is created by our corporate solicitors in Peterborough. It outlines the terms and conditions that govern a business partnership. It is a legally binding contract that is essential for preventing misunderstandings and disputes between partners. This is achieved by clearly defining the roles, responsibilities and expectations of the partners. But what else needs to be included in a partnership agreement? That’s what our corporate lawyers look at into blog post.

Included within your partnership agreement is the basic information. While it may seem obvious, it can sometimes be missed without professional and legal support. The names of the partners involved within the business. The official name of the business needs to be included too. You will need to include the purpose of the business. This includes the primary activities and objectives of the partnership. A chosen place or location for the business must be stated clearly too.

The contributions and ownership must be included in a partnership agreement too. This includes any initial contributions such as capital, property or services contributed by each partner. There will also need to a clear outline of ownership interests including the percentage each partner holds. This will be based on their contribution.

Roles and responsibilities of both partners will need to be clearly outlined too. This includes management and decision making of each partner and voting rights or procedures for resolving disputes. The outline of the authority and duties each partner has must be included in the partnership agreement too.

Financial arrangements must be covered within the partnership agreement too. This will cover things like profit and loss distribution, compensation and banking arrangements. The expected duration and termination must be stated in the partnership agreement too. This will include things like the terms of the partnership and the conditions for termination. This is something that our corporate solicitors can go through with you when drafting your partnership agreement.

It is important that dispute resolution is clearly outlined in the partnership agreement too. This includes an outline of meditation and arbitration, which will help to avoid litigation. It will also include details surrounding buyout provisions based on various events such as death, retirement or departure from the partnership.

Included within the partnership agreement will be confidentiality and non-compete clauses to ensure that partners and the business are protected. There also needs to be an outline for any amendments or modifications that need to be made to the partnership agreement.

Looking at entering a partnership for your business? Call our partnership agreement legal specialists in Peterborough now to see how we can help you.