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Partnership Agreement Between Two Individuals Template for England and Wales

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Key Requirements PROMPT example:

Partnership Agreement Between Two Individuals

"I need a Partnership Agreement Between Two Individuals for starting a software development consultancy with my colleague, where I will contribute 60% of the initial capital and want to include specific provisions about intellectual property rights and client relationships."

Document background
A Partnership Agreement Between Two Individuals is essential when two people wish to formalize their business relationship under English and Welsh law. This document is particularly crucial as it defines the rights, responsibilities, and obligations of both partners, helping prevent future disputes and misunderstandings. The agreement should be used at the commencement of any partnership venture and includes detailed provisions for profit sharing, management structure, capital contributions, and dissolution procedures. It provides legal protection for both parties and ensures compliance with the Partnership Act 1890 and related legislation.
Suggested Sections

1. Parties: Identification and details of the partners

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 requirements

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

7. Management and Decision Making: Day-to-day management and voting rights

8. Duration and Termination: Term of partnership and termination provisions

Optional Sections

1. Intellectual Property Rights: IP ownership and usage rights when IP is relevant to the business

2. Non-Competition: Restrictions on competing activities when partners want to prevent competition

3. Insurance: Required insurance coverage when specific insurance requirements exist

4. Banking Arrangements: Details of partnership bank accounts when specific banking arrangements are needed

Suggested Schedules

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments

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

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

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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: The fundamental legislation governing partnerships in England and Wales, defining basic partnership principles, rights, and obligations

Limited Partnerships Act 1907: Legislation governing limited partnerships, which may be relevant depending on the partnership structure

Companies Act 2006: Contains certain provisions that may affect partnerships, particularly regarding business administration and registration

Law of Property Act 1925: Governs aspects relating to partnership property and real estate holdings

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

Business Names Act 1985: Regulates the use of business and trading names by partnerships

Data Protection Act 2018: Governs how partnerships must handle and protect personal data, including UK GDPR compliance

Equality Act 2010: Ensures prevention of discrimination in business operations and employment practices

Income Tax Act 2007: Governs taxation of partnership income and partners' individual tax obligations

Value Added Tax Act 1994: Regulates VAT obligations if the partnership's turnover exceeds the threshold

Employment Rights Act 1996: Defines employment rights and obligations if the partnership hires employees

Health and Safety at Work Act 1974: Sets out health and safety requirements for business operations and workplace safety

National Minimum Wage Act 1998: Ensures compliance with minimum wage requirements for any employees

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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