business partnership

What is the Advantage of a Partnership Agreement?

Cressida Johns Business Advice

Want to start a business and are unsure what business type to go for? Are you thinking about starting a partnership agreement instead of being a Sole Trader or Limited Company? Before you do so, take a look at the pros and cons of starting a partnership agreement. Full article with thanks to: The principal law governing partnerships is set out in the Partnership Act 1890 (the “Act”) which defines a partnership as “the relation which exists between persons carrying on a business in common with a view to profit” (section 1 of the Act). The question of whether a partnership exists or not is therefore a matter of fact (not necessarily agreement). It is therefore not something that the parties can simply determine for themselves. While the relationship can be governed by a written partnership agreement, the essence of a partnership is the continuing relationship between two or …