50 50 Partnership Agreement Template for England and Wales

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Key Requirements PROMPT example:

50 50 Partnership Agreement

"I need a 50/50 Partnership Agreement for a new tech consulting business I'm starting with my colleague in March 2025, with specific provisions for intellectual property protection and remote working arrangements."

What is a 50 50 Partnership Agreement?

The 50/50 Partnership Agreement is essential when two parties wish to establish an equal business partnership under English and Welsh law. This document is particularly useful for new business ventures or when formalizing existing informal partnerships. It provides detailed provisions for equal profit sharing, joint decision-making, and mutual responsibilities. The agreement is drafted in compliance with the Partnership Act 1890 and related legislation, offering protection to both partners while establishing clear operational guidelines. The document includes crucial elements such as capital contributions, management rights, dispute resolution mechanisms, and exit strategies, making it a fundamental tool for any equal partnership arrangement.

What sections should be included in a 50 50 Partnership Agreement?

1. Parties: Identification and details of the partners

2. Background: Context and purpose of the partnership

3. Definitions: Key terms used throughout the agreement

4. Partnership Business: Nature and scope of the partnership business

5. Capital Contributions: Initial and ongoing capital requirements

6. Profit and Loss Sharing: 50/50 split arrangements and distribution mechanics

7. Management Rights: Decision-making processes and authority levels

8. Partner Duties: Obligations and responsibilities of partners

9. Term and Termination: Duration and dissolution provisions

What sections are optional to include in a 50 50 Partnership Agreement?

1. Intellectual Property: IP ownership and usage rights - include when IP is significant to the business

2. Non-Compete: Restrictions on competitive activities - include when protecting business interests is crucial

3. Insurance: Required insurance coverage - include when specific risks need coverage

4. International Operations: Cross-border business provisions - include for international partnerships

What schedules should be included in a 50 50 Partnership Agreement?

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments

2. Schedule 2: Business Plan: Initial business strategy and projections

3. Schedule 3: Partner Contact Details: Communication and notice information

4. Schedule 4: Asset Register: List of partnership assets and ownership details

5. Schedule 5: Banking Arrangements: Bank account and financial management details

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Partnership Act 1890: The fundamental legislation governing partnerships in England and Wales that defines basic partnership rights and obligations, including profit sharing, management rights, and dissolution provisions

Limited Partnerships Act 1907: While primarily focused on limited partnerships, contains provisions that may be relevant to general partnerships

Companies Act 2006: Though primarily for companies, contains relevant provisions for partnerships operating businesses, particularly regarding company formation and registration

Law of Property Act 1925: Governs the treatment and handling of partnership property matters and real estate holdings

Business Names Act 1985: Specifies requirements for business name registration and usage for partnerships

Partnership (Accounts) Regulations 2008: Sets out the financial reporting and accounting requirements for partnerships

Equality Act 2010: Contains non-discrimination provisions affecting partnerships, including partner relationships and employment matters

Data Protection Act 2018 and UK GDPR: Outlines data protection obligations and requirements for handling personal data within the partnership

Finance Acts: Governs the tax treatment and obligations of partnerships, including income tax and capital gains considerations

Money Laundering Regulations 2017: Sets out anti-money laundering requirements that may apply to the partnership's business operations

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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