If you’re in business with one or more other people, with a view to making profit, then you are in partnership and it’s key to have a Partnership Agreement in place.
If you do not have a formal agreement in place to regulate how you as partners act and work together, then you are not on your own. Many businesses overlook putting a formal Partnership Agreement in place. This approach can be costly as soon as differences of opinions and tensions arise between the parties involved.
Having a formally documented Partnership Agreement in place offers benefits and certainty to all concerned. Areas such as how profits are distributed to how decisions are made can be set out and agreed and if differences or misunderstandings start to arise between partners, a Partnership Agreement provides documented evidence as to what was agreed between all parties.
If you don’t have a Partnership Agreement in place, your business will be governed by the general provisions of the Partnership Act 1890, the provisions of which is unlikely to be beneficial to you or the success of the business. Having a clearly defined Partnership Agreement in place will also override the default provisions of the Partnership Act 1890.
At SO Legal Solicitors, our Commercial Team will work with you to meet the needs of you and your business. Our solicitors will draft a Partnership Agreement, no matter whether you’ve been operating as a business for some time or are just starting up, which will take account of factors such as:
Duration – how long the partnership agreement will last for and how it can be terminated.
Assets – how the business’ assets will be divided and used and who they will belong to.
Capital – the amount each partner will provide and what to do if additional capital is required.
Profits & Losses – the percentage of profit and loss each party should be responsible for
Relationships – where power lies within the partnership and the proportion of authority attributed to each partner, who can make decisions and what happens in the case of disagreements.
A Partnership Agreement can minimise the potential for conflict between the partners of a business.
We have extensive experience in advising on partnership matters and drafting partnership agreements and our Commercial Solicitors in Eastbourne, Brighton, Hove, Uckfield and Notting Hill work alongside clients to fully understand the commercial aims of the partnership, in order to draft a partnership agreement that best fits the client’s requirements.
Our Partnership Agreements start from £650 + VAT.
Contact Hamed Ovaisi for more information.
To guide you through the process, please complete the following Partnership Agreement Questionnaire: