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Partnership Agreement Between Three Individuals Template for England and Wales

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Key Requirements PROMPT example:

Partnership Agreement Between Three Individuals

"I need a Partnership Agreement Between Three Individuals for starting a digital marketing agency in London, where two partners will contribute equal capital of £50,000 each, and the third partner will contribute expertise and time only, with a proposed profit split of 40-40-20."

Document background
A Partnership Agreement Between Three Individuals is essential when three people wish to establish a formal business partnership under English and Welsh law. This document sets out the fundamental terms of their business relationship, including financial commitments, operational responsibilities, and profit-sharing arrangements. It provides legal protection for all partners and clarity on their respective rights and obligations. The agreement should be used at the commencement of any three-person partnership or when formalizing an existing arrangement, ensuring compliance with the Partnership Act 1890 and other relevant legislation.
Suggested Sections

1. Parties: Details of the three partners entering into the agreement

2. Background: Context and purpose of the partnership

3. Definitions: Key terms used throughout the agreement

4. Partnership Business: Nature and scope of the partnership business

5. Capital Contributions: Initial and ongoing capital contributions of partners

6. Profit and Loss Sharing: Distribution of profits and allocation of losses

7. Management and Decision Making: Partnership governance and voting rights

8. Partners' Duties and Obligations: Responsibilities and obligations of each partner

9. Banking and Financial Matters: Financial procedures, bank accounts, and accounting requirements

10. Duration and Termination: Term of partnership and circumstances for termination

11. Death or Incapacity: Procedures in case of death or incapacity of a partner

12. Disputes: Dispute resolution procedures

13. General Provisions: Miscellaneous legal provisions including notices, amendments, and governing law

Optional Sections

1. Intellectual Property Rights: Provisions governing ownership and use of intellectual property created during the partnership

2. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of clients/employees

3. Insurance: Requirements for business insurance and professional indemnity coverage

4. Admission of New Partners: Procedures for admitting additional partners to the partnership

5. Good Will: Treatment and valuation of partnership goodwill

Suggested Schedules

1. Schedule 1 - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contribution

2. Schedule 2 - Business Plan: Initial business plan and financial projections

3. Schedule 3 - Partnership Property: List of partnership assets and property

4. Schedule 4 - Accounting Policies: Agreed accounting principles and procedures

5. Schedule 5 - Profit Sharing Ratios: Detailed breakdown of profit and loss allocation between partners

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


























Clauses






























Industries

Partnership Act 1890: Primary legislation governing partnerships in England and Wales, covering partnership definition, rights and duties of partners, partnership property, partner liability, and dissolution procedures

Limited Partnerships Act 1907: Legislation governing limited partnerships, may be relevant if considering special partnership structures

Companies Act 2006: Contains provisions relating to business names and certain aspects of business operation that may affect partnerships

Law of Property Act 1925: Legislation governing how partnership property is held and transferred

Financial Services and Markets Act 2000: Relevant if the partnership engages in regulated financial activities

Business Names Act 1985: Legislation governing the use and registration of trading names for partnerships

Equality Act 2010: Ensures non-discrimination and equal treatment within the partnership and in dealings with third parties

Data Protection Act 2018: Governs the handling of personal data by the partnership, including partner and customer information

UK GDPR: Regulations concerning data protection and privacy in the UK post-Brexit

Income Tax Act 2007: Legislation governing how partnership income is taxed

Corporation Tax Act 2010: Contains provisions that may affect partnership taxation in certain circumstances

HMRC Partnership Taxation Rules: Specific guidelines and regulations from HMRC regarding the taxation of partnerships

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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