Partnership Agreements are used to govern the relationship between two or more partners who jointly run a business. An agreement could set out how profits are divided, who is responsible for what aspects of the business and how decisions should be made.
An agreement is not required in order to form a partnership – in fact, partnerships are formed automatically when two or more people work together with the aim of making money. In the absence of an agreement, the law makes certain assumptions should a dispute arise. One risk of not having an agreement in place is that these assumptions may not reflect the intentions of the partners.
At Richard Griffiths & Co our expert team can help draft new Partnership Agreements, advise on existing agreements or offer guidance if you have a problem and do not have a written agreement in place.
Making a Partnership Agreement at the very beginning of a partnership ensures certainty and fairness from the start should a dispute arise. It may even prevent a dispute from arising in the first place, as it focuses the minds of the parties at an early stage to agree on how the business should be run.