UK Partnership Agreement - Editor

Partnership Agreement Editor

Fill in the details below to generate your customized UK partnership agreement

🤝 Partnership Details

The trading name of your partnership
Describe the nature of your partnership business
When the partnership begins trading

👥 Partners

Partner 1
? Initial amount this partner invests in the partnership. This establishes their ownership stake.
? Percentage of profits this partner receives. Total must equal 100% across all partners.
Partner 2
WARNING:

💰 Capital & Profit Sharing

? How losses are divided. Usually same as profit share, but can be different.
? Annual interest rate paid on partners' capital contributions before profit distribution.
? How partners can invest additional capital if needed for business growth.
? Maximum amount partners can withdraw monthly for living expenses before profit distribution.
Amount each partner can withdraw monthly

💵 Partner Salaries

? Salaries paid before profit distribution, typically for active working partners. Default Partnership Act: no salaries.
Specify which partners receive salaries and amounts

🎯 Decision Making Authority

Default Partnership Act 1890: Every decision requires unanimous agreement of all partners. You can modify this for operational efficiency.
? Day-to-day operational decisions like client acceptance, supplier selection, routine purchases.
? Significant matters like capital expenditure over limit, taking loans, changing business nature, admitting new partners.
? Maximum amount a partner can spend without requiring approval. Spending over this needs unanimous/majority consent.
Single transaction limit (£)
? Who can sign cheques, approve bank transfers, and manage partnership bank accounts.

📋 Partner Roles & Responsibilities

Define each partner's responsibilities and general obligations
? Expected working hours or commitment level from each partner.
? ? Whether partners can engage in other business activities or employment.

➕ Admission of New Partners

? What approval is needed to admit a new partner to the partnership.
? How new partner's capital contribution is determined when joining.

🚪 Partner Withdrawal & Retirement

? How much advance notice a partner must give before leaving the partnership voluntarily.
? Optional age at which partners are expected or required to retire from the partnership.
? How the partnership is valued when buying out a departing partner's share. Critical to avoid disputes.
? How and when the departing partner receives payment for their partnership share.

⚠️ Expulsion of Partners

Expulsion clauses allow removal of a partner for serious misconduct or breach of partnership duties. Courts will enforce reasonable expulsion terms.
? What majority is needed to expel a partner (excluding the partner being expelled from the vote).
? Level of detail for what constitutes grounds for expulsion.

🏥 Death & Incapacity Provisions

? What happens to the partnership when a partner dies. Default: partnership dissolves.
? How and when the deceased partner's estate receives payment for their partnership share.
? What happens if a partner becomes unable to work for an extended period due to illness or disability.
? Valuation and payment terms if partnership buys out incapacitated partner's share.

🔒 Non-Compete & Confidentiality

? How long departing partners are restricted from competing. Must be reasonable to be enforceable.
? Geographic area where non-compete applies. Broader scope may be harder to enforce.
? Prevents departing partners from soliciting partnership clients or customers.
? How long partners must keep partnership information confidential after leaving.

⚖️ Dispute Resolution

? Process for resolving partner disputes before going to court. Mediation/arbitration saves significant costs.
? Which arbitration framework applies if disputes go to arbitration.

🔚 Partnership Dissolution

? What majority is needed to voluntarily dissolve the partnership.
? How partnership assets are distributed when the partnership ends.

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