This document is a clause which can be inserted into a partnership agreement.
Excluding a partner from a partnership due to incapacity is an extremely sensitive matter and therefore it would be unwise to wait until such incapacity occurs before determining what to do. It is best to consider what to do in these circumstances when commencing the partnership arrangement.
Using this precedent
This is a general clause which can be inserted into a partnership agreement. This clause can also be inserted as an alternative to the expulsion provisions in the separate precedent “Partnership agreement (short form, general)”.
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 Lexis Nexis 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.