A partnership is an arrangement where parties agree to cooperate to advance their mutual interests. Under common law legal systems, the basic form of partnership is a general partnership, in which all partners manage the business and are personally liable for its debts. Two other forms which have developed in most countries are the limited partnership (LP), in which certain limited partners relinquish their ability to manage the business in exchange for limited liability for the partnership’s debts, and the limited liability partnership (LLP), in which all partners have some degree of limited liability.
There are two types of partners. General partners have an obligation of strict liability to third parties injured by the Partnership. General partners may have joint liability or joint and several liability depending upon circumstances. The liability of limited partners is limited to their investment in the partnership.
A silent partner is one who still shares in the profits and losses of the business, but who is uninvolved in its management, and/or whose association with the business is not publicly known; these partners usually provide capital.
This partnership agreement is suitable for all Australian partnership situations, whether you are architects, car sellers, farmers or builders. Having a partnership agreement in place is essential as it sets the terms for a sound business relationship. This document is suitable for newly formed partnerships and existing partnerships. It deals particularly thoroughly with provisions following disagreement or dissolution because this is the area where partners are most likely to want to rely on the agreement.
The document is suitable for:
• Anyone forming a new business partnership;
• An existing business owner wishing to go into partnership with someone else;
• Anyone in an existing partnership looking for a document to record their previously unrecorded partnership terms.
Application and features
Very flexible to suit most situations;
Suitable for any type of business;
Calls for compliance with non-discrimination and other policies;
Suitable for partnerships of up to ten or more people;
Very extensive guidance notes.
Contents
Partnership shares;
Partnership property;
Duration;
Capital;
Profits and losses;
Drawings;
Meetings and voting;
Holidays and absence;
Cars and other partnership policies;
Accounts and records;
Restrictions to protect other partners;
Partnership policies;
Expulsion;
Comprehensive termination provisions to protect ongoing partners.