Partnership Agreement Template
A partnership agreement sets out how partners share profits, make decisions and handle disputes or exits. Without one, the default Partnership Act 1890 rules apply, which rarely suit modern businesses.
What this partnership agreement covers
- Profit and loss sharing
- Capital contributions
- Decision-making and management
- Admitting or removing partners
- What happens on dissolution
When you need a partnership agreement
- Starting a business with partners
- Formalising an existing partnership
- Preventing future disputes
The legal framework
Understanding the law behind a partnership agreement helps you use it well. Here is the key UK legislation that applies:
Frequently asked questions
What happens without a partnership agreement?
The Partnership Act 1890 applies by default — for example, splitting profits equally regardless of contribution, which often isn't intended.
Is a partnership different from a limited company?
Yes. Partners are usually personally liable, whereas a limited company is a separate legal entity.
How Legal Lift helps
Answer a few plain-English questions and our AI generator produces a tailored partnership agreement, ready to edit, download as PDF or Word. Every template is kept current with UK law, and our SRA-regulated solicitor partners are available if you'd like it reviewed.