This document is a clause which can be inserted into a partnership agreement.
This clause applies where:
- the partnership business includes the running of business that requires a licence; and
- the partners decide that the partnership will not apply for the relevant licences but that one partner will be responsible for the licence of the business.
It is possible for the partnership to hold the relevant licence and for all partners to be equally liable to comply with licensing obligations jointly and severally. It is also possible for a single partner to hold the licence. It is important when allowing one partner to hold licences in his or her own name to consider what would happen in relation to those licences on the death of the partner or the termination of the partnership.
Using this precedent
This clause can be used to insert licencing provisions into the separate precedent “Partnership agreement (short form, general)”, or can be used in any partnership agreement if required.
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 AusDocsOnline.com 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.