Partnership Agreement

If you run a business with at least one other person, and your business is not a limited company, then you should have a partnership agreement in place. That’s the case even for family-run businesses, which tend to have more informal arrangements. A partnership agreement sets out how the relationship between the partners and how partners interact with each other. It will clarify important issues such as:
  • How profits are distributed
  • How decisions are made in the business
  • What happens when a partner retires or leaves the partnership
  • How you’ll deal with disputes between the partners
This service is for drafting a partnership agreement, in circumstances where the key terms of business are already agreed upon between the partners. If you would like a lawyer to review a partnership agreement that has been drafted elsewhere, in order to advise you on your risks and rights, please select our ‘reviewing documents’ service.

What you will get from this service

A 60 minute consultation with your lawyer to align objectives. You’ll discuss:
  • Who the partners are and their roles in the business
  • The ways in which you intend to share profits
  • The objectives you want to achieve with the agreement
  • Your specific questions about the agreement
  • The key information your lawyer needs from you to begin drafting the agreement
  • The default position under the Partnership Act 1980 if the agreement is not signed or you continue without a partnership agreement.
You’ll receive a professionally drafted partnership agreement.

What this service will enable you to do

You will have a formal, legally binding document that regulates the relationship between the partners. This provides you with:
  • Protection for your partners and their investment in the business
  • Clarity on each individual’s roles, rights, responsibilities and obligations as partners in the business.
  • Evidence of what was agreed between the parties in the event of a disagreement. This will keep costs down if the disagreement escalates into a formal dispute.
  • Mechanisms by which to expel a partner from the business
  • Protection for your business in terms of restraint of trade clauses effective on outgoing partners

What happens after I hire a lawyer?

1. Onboarding

You send your lawyer proof of ID and address and your lawyer checks for conflicts. You send any relevant documentation to your lawyer. Your lawyer send you a client engagement letter to sign and return.

2. Personal Consultation

Choose between a phone, online or face-to-face meeting with your lawyer

3. Draft documentation

Your lawyer sends you a draft version of the document for you to review

4. Revisions and approval

You review the draft, provide comments if necessary, and request revisions. Your lawyer will provide you with another iteration, incorporating your changes as far as possible. Once you’re happy with the document, you approve the final version.

5. Leave a review of your Experience

Leave a review for Legal Drop and your lawyer