A deed of partnership is a legally binding agreement between the partners of a business. This agreement describes how the partnership is to be run as well as detailing individual duties and obligations.
A deed of partnership will usually cover:
- the amount of money each partner is putting into the business
- profit-sharing agreements
- hours of work for each partner
- salaries
- future changes in the partnership what happens if one partner dies, marries or wants to leave?
Business Debts are Joint
Just as a sole trader has unlimited liability for their business debts, partners have unlimited liability for their business debts, too. So if your partner accumulates business debts without your knowledge, you are also liable for them.
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