Partnership Agreements

A partnership agreement in written form will have to be tailor-made to reflect the nature of the firm being established. It should have the following important terms, however-

1. Names of the partners
2. A description of the business to be undertaken
3. The shares of the profits and losses to be allocated to the different partners
4. The respective contributions of the partners to the business, financial and personal
5. A description of the partnership assets and their ownership
6. A mechanism for bringing the partnership to an end, and for dividing the assets and liabilities when it does conclude.

There will probably be a number of other terms which partners will want, eg specifying holiday entitlements.