A Partnership Agreement should be used for a number of parties entering into a business arrangement with a view to sharing profits.

It is extremely important that any proposed partnership is based upon a detailed Partnership Agreement.  Ideally a Partnership Agreement should be agreed before the partnership commences but in many situations parties will find they have been operating together in business for some time and now feel they must regulate their business relationship.  All partners need to be aware of their rights and responsibilities.  The partnership will accumulate assets and incur liabilites from the start of business and therefore it is essential that these are properly accounted for under a Partnership Agreement.  Without a Partnerhship Agreement the parties must rely on the Partnership Act 1896, which will not necessarily allow for the partners intentions.

Matters which should be clear in a Partnership Agreement include:

• the partnership name
• a description of the business
• partnership assets
• details of accountants, bank and premises
• details of each partner's duties and responsibilities to the other partners
• restrictions on any partner's authority
• the capital and income distribution
• the holiday entitlement for partners
• partner benefits e.g. cars and pensions
• retirement of a partner
• expulsion of a partner
• termination of the partnership, and
• dispute resolution.

We at VSH have considerable experience in the preparation of Partnership Agreements along with other similiar business type agreements which may come under the guise of a co-operation agreement or a collaboration agreement.