Basic Partnership Agreement Template

Basic Partnership Agreement Template is a short-form agreement designed for a straightforward general partnership, typically with a small number of individual partners (for example, two or three people starting a small business together).

A partnership does not have separate legal personality. In the absence of an express agreement, the Partnership Act 1890 provides default rules for how the partnership operates. In practice, those defaults may not suit a modern business, so the partners will often want a written agreement to set out what they have actually agreed. Case law also recognises that a contractual agreement is not the essence of a partnership, which is a continuing personal as well as commercial relationship.

What does Basic Partnership Agreement Template do?

It records the core terms for running a simple partnership, so the partners have clear written agreement on how the business will be owned, managed and operated.

What does Basic Partnership Agreement Template cover?

It is drafted on the basis that:

• the partners make equal capital contributions
• profits and losses are shared equally
• all partners work full time in the business
• the business is managed jointly by the partners
• no additional employees are anticipated
• the partners are required to consider environmental, social and governance (ESG) matters

Tax matters are not considered in this agreement. The general rule is that tax is payable by each partner and not the partnership itself.

When should you use Basic Partnership Agreement Template?

Use it where the partnership arrangements are straightforward and you want a simple written agreement that covers the key terms between a small number of partners.

What else you may need

For a more sophisticated structure (for example, where more partners are involved, the business may take on employees, or a Managing Partner is to be appointed), Long Form Partnership Agreement may be more appropriate.

Basic Partnership Agreement Template is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.