Why do I need a Partnership Agreement?
The short answer is, do you want control of your business affairs or, instead, are you happy to leave it up to the wisdom of some 19th century law draftsman?
That is because, when you are in business as a partnership, without a specific partnership agreement in place your business relations are governed by the 1890 Partnership Act.
The 1890 Act provides for the following:-
- Key Strategic decisions are made on a majority basis;
- All property brought into the business belongs to it;
- Profits and losses are divided equally irrespective of contribution;
- Every Partner must agree before a new Partner can join;
- At any time any Partner can give notice and dissolve the Partnership.
The only way to avoid these often unwelcome consequences is to have a partnership agreement that provides for alternatives.
Fixed Fee Partnership Agreements
Temple Heelis is regularly consulted by clients looking for guidance on the options available to them and we prepare bespoke partnership agreements.
Fixed fees are available on a case by case basis typically between £500 – £750 plus VAT.
To assist you and us to understand your particular circumstances please see below our partnership agreement checklist. For your bespoke fixed fee quotation please contact Richard Moore, rmoore@templeheelis.co.uk, tel: 01539 816416 or John Sim, jsim@templeheelis.co.uk, tel: 01539 816406.
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