This Partnership Agreement template sets out the rights and obligations of 2 to 4 partners who wish to go into business together. This is a formal agreement between the partners setting out their rights and obligations during the existence of the partnership and also upon its dissolution.
Why do I need a Partnership Agreement?
There is no legal requirement to have a formal, written partnership agreement. In fact, there are no formal documents or forms necessary to go into business as partners. Having said that, there are some very good reasons for having a well-drafted partnership agreement, including:
- The Partnership Act 1890 - if you don't have a formal partnership agreement then the default provisions of this act will apply which may well not suit e.g. all partners will be entitled to an equal share of the profits regardless of their input
- Planning for the future - a partnership agreement will outline how to handle important events during the life of the partnership such as a member retiring
- Protect your financial interest - a written partnership agreement will ensure that the financial interests of partners are formally recorded.
This agreement is suitable for use in Scotland and includes clauses covering:
- Establishment of Partnership
- Involvement in Partnership Business
- Bank Accounts
- Profits and Losses
- Accounting Records
- Prohibited Acts
- Consequences of Death or Retiral