This document is a clause which can be inserted into a partnership agreement.
In certain circumstances, partners agree in their individual capacities to pay some outgoings of the business, such as rates and taxes and rent. This can occur where there is an anticipated cash flow issue, or where partners use the partnership business premises for their personal benefit as well.
Using this precedent
This is a general clause which can be inserted into a partnership agreement. This clause can also be inserted as an additional clause into the banking provisions of 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 LexisNexis by Michael Heraghty, Partner, TressCox Lawyers, Rosemarie Ryan, Barrister and Elise Margow
Thisdocument is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.