Partnership Agreement – What should be considered?
What should be covered in a partnership agreement?
There will be a range of financial, operational and termination issues that all properly drafted and considered partnership agreements should cover. Much will depend on the business of the partnership, how well the partners know each other and their proposed level of commitment to the business, both financial and personal.
The Partnership Act 1890 legislates for how a partnership will operate and is regulated, however in practice much of this will not be practical or applicable for a modern business and should be superseded by a properly drafted partnership agreement to cover all the areas of concern to the partners.