Deed of Adherence to Basic Partnership Agreement
This Deed of Adherence is compatible with the Simply-docs Basic Partnership Agreement, (document number CO.CD.04.08.), and allows for a new partner to be added to a partnership which is governed by the Basic Partnership Agreement. Click here for the Deed of Adherence to a Shareholders’ Agreement.
The document is created as a deed (rather than a simple agreement) to avoid problems that may occur as a result of any lack of consideration by any of the original partners.
If your partnership was formed under the Simply-docs Long Partnership Agreement (which used to be titled ‘Partnership Agreement’), you need to refer to the Deed of Adherence to Partnership Agreement.
This Deed of Adherence to Partnership Agreement can also be used if your partnership was set up using a third party Partnership Agreement (i.e. not a Simply-docs agreement).
This Deed of Adherence works by binding the new partner into the original partnership agreement, such that he undertakes to perform the same obligations as the original partners, and has the same entitlements, all with effect from the date of the Deed. The original partners give him an indemnity against any losses arising before he joined the partnership.
The addition of a new partner will change the percentage share of profits and losses for all partners. This adjustment is handled by adding a new Schedule which sets out the partners’ (both original and new) capital contribution, profit share and monthly drawings. The deed has to be executed by ALL the partners in the partnership, together with the joining partner. The Deed should be dated on the date that the new partner joins the partnership. Please note that HMRC must be notified of any partnership changes.
This deed is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the Corporate Document Folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.