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What is a Partnership Agreement (Individuals)?

A Partnership Agreement (Individuals) is a contract among partners who carry on a business as a partnership

A Partnership Agreement (Individuals) sets out the basic rules on which the partnership operates, e.g. how accounts are prepared or how funds can be withdrawn.

A Partnership Agreement (Individuals) also sets out the powers and duties of each partner, and most importantly how the profits and losses are shared among them.

Key points included

  • Details of the business of the partnership;
  • Capital share among the partners;
  • Limits on transfers, debts, and liabilities;
  • Circumstances under which partners may retire be expelled; and
  • Obligations and restrictions on outgoing partners.

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