A partnership can best be defined as a relationship that subsists between persons carrying on business in common with a view to making a profit.

It is not a legal requirement that a partnership arrangement be expressed in writing. It can be implied from the conduct of the parties in the absence of any express agreement. However, it is strongly recommended that the terms and conditions of any partnership agreement be reduced to writing. If they are not, then often it is the Partnership Act 1890 that will apply in the event of any disputes or questions arising. This is generally inappropriate for the needs of a modern business.

By doing so, you will be able to avoid any ambiguity and in most instances any dispute can be effectively resolved by referring to the written partnership agreement. A formal document achieves an element of certainty regarding an issue that might otherwise be the subject of doubt. The partners would also be clear as to what their duties are and the nature of the relationship as the document will be an authoritative source of answers to any queries that may arise.

We will advise on and draft an appropriately tailored partnership deed for you addressing all of the key issues:

1. Term of the partnership. Is it intended to cover one project only or to be to of indefinite duration?
2. Nature of the partnership business. Are the partners to be limited to a particular area of the business?
3. Capital. What financial input will each partner make at the outset?
4. Income. How will the profits (and the losses) of the business be split between the partners?
5. Property. What is partnership property and what is to remain the property of individual partners?
6. Management. How will the business be run on a day-to-day basis? Will any of the partners be silent?
7. Succession planning. What is to occur when a partners wishes to retire, dies or is declared bankrupt? How is that partners share to be valued, paid for and will the partnership continue?

The team specialises in negotiating and drafting partnership agreements and agreements for merger, de-merger, retirement and dissolution. Whether you are looking to start a partnership from scratch, are looking to become a partner in an existing business or, indeed, retire from partnership, we can help.

For more information please call Freephone 0800 731 2947 and ask for:

Tim Polding
Mark Fergusson