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Capital in partnership with interest (optional clause)

Capital in partnership with interest (optional clause)

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This document is a clause which can be inserted into a partnership agreement.

In most instances, partners provide a capital contribution towards the cost of setting up and maintaining the business of the partnership. In addition to a general clause setting out capital contributions in a partnership agreement, the amount and nature of the contribution of each partner, together with whether the contribution attracts interest, is often included in partnership agreements.

Using this precedent

This clause can be inserted as an alternative to the capital provisions in the separate precedent
“Partnership agreement (short form, general)” or may be used in any partnership agreement.

When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.

This document has been authored for LexisNexis by Michael Heraghty, Partner, TressCox Lawyers, Rosemarie Ryan, Barrister and Elise Margow, Principal, Legally Speaking.

This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.