This document is a clause which can be inserted into a partnership agreement.
Where a partner retires or is expelled from the partnership, it would normally be inappropriate for him or her to compete with the partnership business. It is therefore wise to incorporate a restraint clause in a partnership agreement, that enables the partnership to continue after a partner resigns or is expelled from the partnership.
Using this precedent
This clause can be inserted into a partnership agreement, and can be used to add restraint provisions to 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 Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.