Help needed business partnership agreement

[dublin47]

Hi Everyone
im looking for a bit of help and advice
a well known online site, has asked me to verify my business
they are asking for a business partnership agreement
although our partnership was formed in 2015, we never got around in doing one
my question is it legal if i have one drawn up now and include the start date of 2015
thank you
Richard

 

[Deleted member 335660]

Well I am no lawyer but my accountancy knowledge wonders how you have managed to submit annual accounts without one so far.

If you are just two sole traders working together on friendly terms then I would suggest you set one up now. This site is many posts asking for advice due to partnership failures. Too late once the trouble starts.

As for dating it back to 2015, I am not sure that is so important.

Either way you might want to consult an accountant for advice.

 

[dublin47]

Hi
thanks for your reply
i thought that a Written partnership agreements aren't required by law
and has no bearing on submitting annual accounts or have i got it wrong

 

[WaveJumper]

As above the forum is littered with people who have ended up having (costly) issues with business partners due to not having shareholder or partnership agreements in place do yourself a big favour and get some proper legal advice and get one drawn up

 

[dublin47]

i think we are moving off the original question
as much as i understand that the forum is littered with people
about partnership break-ups, mine was a different question all together

 

[Chris Ashdown]

I believe that there is a common interpretation dating back many years that applies to partnerships and their interpretation if no legal agreement is written down see

https://uk.practicallaw.thomsonreuters.com/8-107-6976?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=The%20relationship%20which%20subsists%20between,Partners%20generally%20have%20unlimited%20liability.

 

[Scalloway]

If there is no formal partnership agreement then the Partnership Act 1890 applies.

Hi
thanks for your reply
i thought that a Written partnership

 

[Paul Kelly ICHYB]

i thought that a Written partnership agreements aren't required by law

Irrelevant - if you have an issue with your partner the PA is the only way to solve them....

On your original question, you can create and update a PA at any time with obvious mutual agreement. Backdating one is a different issue!

 

[The Resolver]

You can agree in a document that the terms by which you have traded from a date in the past as a partnership apply retrospectively. There is also no requirement to enter into a written partnership agreement but to rely on the rules set out in the Partnership Act 1890. You can also agree that any actions in the past that breach what is agreed as having been the case can be specfiucally waived or enforced.. But that should be c;lealrly set out in the new Agreement,

Of course, many of my clients are witness to the fact that it is reckless in the extreme to go into partnership without a written Partnership Agreement .

 

[Deleted member 335660]

Hi
thanks for your reply
i thought that a Written partnership agreements aren't required by law
and has no bearing on submitting annual accounts or have i got it wrong

Hi,
Well forget the law until you get in problems and then it might be too late.
Lots of legal firms are partnerships and the agreement defines who shares the profits ( not necessary 50/50 as they have many partners, sharing of assets etc.)
As I said earlier, not sure what type of organisation you are.