General partnership agreements


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert
Practice notes

General partnership agreements


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert

Practice notes
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It will almost always be advisable for partners to enter into a partnership agreement in order to avoid application of any inappropriate default provisions in the Partnership Act 1890 (PA 1890) or to supplement the statutory provisions where they are insufficient.

Variation of the statutory rights and duties by the consent of all the partners is expressly envisaged in the PA 1890.

For an overview on the formation of a general partnership, see flowchart: Forming a general partnership—flowchart

Default provisions

There are key default provisions that will apply to the operation of a partnership in the absence of any specific agreement to the contrary:

  1. •

    all partners are to share equally in the capital and profits and contribute equally to losses

  2. •

    the partnership must indemnify any partner for payments and liabilities incurred in the ordinary and proper conduct of the partnership’s business

  3. •

    every partner may take part in the management of the partnership business

  4. •

    no partner is entitled to any remuneration for acting in the partnership business

  5. •

    no person may be introduced as a partner without

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Partnership agreement definition
What does Partnership agreement mean?

Written agreement between the partners to a partnership'>general partnership setting out the rights and duties of the partners between themselves.

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