Partnership Agreements Solicitors

When running a business in conjunction with another party, the benefits of having a well-drawn up partnership agreement cannot be underestimated. In the absence of a partnership agreement, the nature of your partnership will be governed by statute (dating back to Victorian times) and, therefore, will unlikely be what you would expect.

At CWJ, our experienced team of commercial solicitors have years of combined experience in advising on partnership agreements. We have been independently recognised for our leading expertise in this area, having previously worked with clients all over the UK.

We can advise on a wide range of issues associated with partnership agreements, including:

• Advising on the specific terms of partnership agreements
• Drafting a partnership agreement from scratch
• Amending an existing partnership agreement
• Resolving partnership agreement disputes
• Advising on issues arising on the appointment of new partners and the retirement of partners

Combining market-leading commercial law expertise with strong business acumen, we can ensure you secure the right terms for your partnership agreement, ensuring that it makes the correct provisions without disrupting the existing relationship between the businesses’ partners.

Speak to our partnership agreement solicitors in Orpington today

To discuss how our corporate lawyers can help your business with forming or amending a partnership agreement, please contact us on 01689 887887 or fill in our enquiry form.

Why choose our partnership agreement solicitors?

Our Corporate Law team have decades of experience in advising on partnership agreements for a wide range of clients operating in various industries.

We have the expertise to navigate even the most complicated partner relationships, providing carefully tailored advice and legal guidance.

Our expertise has been independently recognised in the following ways:

• Ranked Band 1 for Corporate/M&A: SME/Owner-managed Businesses by Chambers & Partners
• Head of Corporate and Commercial Ben Madden is individually ranked Band 1 by Chambers & Partners, while Senior Partner Andrew Wright is recognised as an Eminent Practitioner
• Ranked Tier 3 for Corporate & Commercial by the Legal 500

We can also draw on expertise from across the whole firm for any issues that may be associated with partnership agreements, including general corporate law advice and employment law, and associated property issues.

Our partnership agreement expertise

Drafting partnership agreements

It is imperative that a partnership agreement is carefully drafted to ensure that each partner’s rights and responsibilities are clearly laid out and that all parties understand the duties that they have to one another and to any other party.

Our team can guide you through the process of drafting a partnership agreement, ensuring all the relevant issues are addressed, including:

• Clearly establishing who the relevant partners are
• How partnership shares are divided
• How profits and losses are shared
• Each partner’s respective roles and responsibilities
• What each partner is expected to invest in the business
• The assets that will be retained by individual partners
• The assets that will belong to the business

Reviewing and amending an existing partnership agreement

While having a partnership agreement already in place is a positive step, as this sets out what is to happen if a partner is to leave the business, this doesn’t necessarily mean that the agreement is entirely fit for purpose.

Circumstances quickly and frequently change in business, which means that it’s important to review and update partnerships periodically and in particular wherever any significant changes may have occurred.

Our solicitors can work with your business to review any partnership agreement you currently have in place and make any necessary amendments.

Our legal fees for partnership agreements

We understand that cost is an important factor whenever you deal with a business legal matter. As such, we aim to keep our pricing clear and competitive, with our rates being benchmarked against other comparable firms.

Depending on the circumstances, we can act on a fixed fee basis, which will give you certainty over the costs involved in drafting or amending a partnership agreement. However ordinarily, we calculate our fees on an hourly basis having first provided an estimate of the costs which will be involved.

We provide several flexible payment options so you can structure your payments in a way that suits your business requirements.

Find out more about our fees.

Partnership agreement FAQs

What is a partnership agreement?

To summarise, a partnership agreement is a written agreement between business partners that sets out each party’s contractual obligations towards one another and to the business. It also provides methods for resolving any potential disputes that arise between partners, as well as a basic framework for the day-to-day running of the business.

Without a partnership agreement in place, if a partner leaves or retires, the partnership will automatically come to an end and must be ‘wound up’.

What should a partnership agreement include?

The details of a partnership agreement will be specific to each business. However, there are some common details which typically feature, including:

• The financial obligations of the partners
• Restrictive covenants
• The roles and responsibilities of the partners
• Percentage of ownership
• How disputes are resolved
• How someone could join the partnership
• How exits from the partnership are handled (both voluntarily and involuntarily)

Are partnership agreements legally binding?

Yes, a written partnership agreement will be legally binding. This means that, with exception of specific exit or break clauses, those who have signed the partnership agreement must adhere to its terms and conditions.

Can a partnership agreement be changed?

It is possible to review and change the terms of a partnership, even after it has been previously signed and issued. Given that there is always a possibility that circumstances can significantly change, even over a short period of time, it is strongly recommended that your business periodically reviews any partnership agreement, as well as during major changes or milestones.

There will typically be a process in place to help you change a partnership agreement. Often, it will require everyone involved in the partnership to agree to the change in writing.

What happens if there is no partnership agreement?

If there is no partnership agreement in place, there are several potential consequences which need to be taken into consideration. In the absence of an agreement, the relationship of the partners will be governed by the Partnership Act 1890. The Act effectively treats all partners as equals.

This means that all partners would equally vote, equally share the capital and profits of a business and be jointly liable for any debts.

While this might work in the case of some partnerships, this may be an inaccurate reflection of the actual nature of your partnership, especially if partners all make different financial contributions or if one partner has acted in a way that disadvantages others.

Without a partnership agreement in place, there is also a greater chance for disputes and disagreements to arise, which may not be able to be solved swiftly or effectively, jeopardising the relationship.

If a partner leaves the business or dies without an agreement in place, this will automatically end the partnership.

Do partnership agreements need to be in writing?

Partnership agreements do not necessarily need to be in writing. However, it is usually a sensible idea to have a written document, as this can help to reduce the potential for any confusion or partnership disputes.

Consult our partnership agreement solicitors in Orpington

To discuss how our commercial lawyers can help your business with preparing or amending a partnership agreement, please contact us on 01689 887887 or fill in our enquiry form.