Document background
A Partnership Offer Letter is a crucial document used when an existing partnership wishes to bring in a new partner or when establishing a new partnership structure in South Africa. This document serves as the initial formal offer and framework for negotiating the final partnership agreement. It should comprehensively outline the proposed terms of partnership, including capital contributions, profit-sharing ratios, management responsibilities, and key conditions that will form the basis of the subsequent partnership agreement. The letter must comply with South African common law principles governing partnerships and consider relevant statutory requirements, including tax implications and industry-specific regulations. It's typically used in professional services firms, consulting practices, and other business partnerships where specific expertise or client relationships add value to the partnership.
