Generally a partnership is a group of people carrying on business together, and not incorporated into a registered company. A partnership is recognized in law, but it does not have strict legal identity apart from its members. Partnership is controlled by the relevant legislation in the various states of Australia. Generally, the legislation makes some important provisions with respect to partners. Unless the partners contract otherwise:
- all are entitled to a say in the running of the business;
- all are entitled to enter the partnership into contracts;
- they are jointly liable for debts, and the consequences of torts, to the limits of their own estates.
A partnership is defined by thePartnership Act 1892 (NSW) as the relationship which exists between persons carrying on a business in common with a view to profit. It involves an agreement between two or more parties to enter into a legally binding relationship and is essentially contractual in nature.
It’s wise to have a formal written partnership agreement because it sets out each partner’s responsibilities and reduces the likelihood of disputes. For example, one partner may be contributing more money or time to the business and therefore be entitled to a greater share in the business. An agreement can also cover what happens if the structure is dissolved or changed, for example, through the retirement or death of one of the partners. We have a range of legal documents which can assist with the running, establishment and maintenance of partnerships.
Confidentiality and non-disclosure
Avoid essential information and trade secrets about your partnership from leaking ‘mistakenly’ by using these well drawn confidentiality and non disclusre agreements.
Partnership agreements
Whether you are forming a new partnership, or simply think it is the right time to start using a partnership agreement for your existing business, this collection will cover all eventualities. Net Lawman stock partnership agreements for limited liability partnerships, regular partnerships, family partnership situations and disolution agreements.