Partnership Agreement Template (UK)
Create Your Professional Contract in Minutes

A comprehensive Partnership Agreement should clearly define:

• Partner details - Full names, addresses, and roles of all partners
• Business purpose - Nature and scope of the partnership business
• Capital contributions - Initial and ongoing financial contributions from each partner
• Profit and loss sharing - How profits and losses will be divided (can be unequal)
• Decision-making authority - What requires unanimous consent vs majority vote
• Partner roles and responsibilities - Day-to-day duties and management structure
• Salaries and drawings - Partner remuneration and withdrawal limits
• Admission of new partners - Process and terms for adding partners
• Partner withdrawal and retirement - Exit procedures and valuation methods
• Death and incapacity provisions - What happens if a partner dies or becomes unable to work
• Dispute resolution - Mediation and arbitration procedures
• Dissolution terms - How the partnership can be terminated

Our template includes all essential clauses for a legally sound partnership.

Partnership Act 1890 Default Rules Apply:

• Equal profit sharing: All profits and losses split equally, regardless of effort or capital contributed
• No partner salaries: Partners aren't entitled to salaries, only profit shares
• Unanimous decisions: Every decision requires all partners' agreement
• No interest on capital: Partners get no interest on capital contributions
• Unlimited personal liability: Each partner personally liable for all partnership debts
• Automatic dissolution: Partnership ends when any partner leaves, dies, or goes bankrupt

Common Partnership Disputes:

Unequal work contributions, profit distribution disagreements, unauthorized borrowing, competing businesses, partner buyout valuation, and exit term conflicts. These disputes cost UK businesses millions in legal fees annually.

A £10 agreement prevents £10,000+ disputes.

Comprehensive Partnership Protection:

• ✓ Complete partner details section
• ✓ Business name and purpose clauses
• ✓ Partnership commencement date
• ✓ Capital contribution terms (initial and future)
• ✓ Flexible profit and loss sharing ratios
• ✓ Partner salary and drawing provisions
• ✓ Decision-making authority matrix
• ✓ Banking and financial management rules
• ✓ Partner roles and responsibilities
• ✓ Working hours and time commitments
• ✓ Admission of new partners procedure
• ✓ Voluntary withdrawal terms
• ✓ Retirement provisions
• ✓ Expulsion clauses (for cause)
• ✓ Death and incapacity provisions
• ✓ Business valuation methods
• ✓ Buyout payment terms
• ✓ Non-compete clauses
• ✓ Confidentiality obligations
• ✓ Dispute resolution (mediation/arbitration)
• ✓ Partnership dissolution procedures
• ✓ Amendment and variation terms

Professional, legally binding, and ready to sign.

Don't Make These Critical Errors:

• No written agreement: Relying on handshakes and verbal promises leads to disputes when money is at stake.
• Equal splits by default: Assuming equal profit shares is fair when contributions, effort, or hours differ significantly.
• Vague decision-making: Not specifying what requires unanimous vs majority consent paralyzes the business.
• No exit strategy: Missing buyout terms creates expensive valuation disputes when partners leave.
• Ignoring death/incapacity: No provision for what happens if a partner dies or becomes unable to work.
• No dispute resolution: Heading straight to court instead of required mediation wastes time and money.
• Missing non-compete: Partners can immediately compete with you after leaving without non-compete clauses.
• Unclear capital terms: Not defining how future capital is contributed or credited creates confusion.
• No drawing limits: Partners withdrawing excessive funds damages business cashflow.
• Forgetting amendments: No clear process for updating the agreement as the business evolves.

Our template prevents all these mistakes with clear, enforceable terms.