This document is a clause which can be inserted into a partnership agreement.
Most partnerships are partnerships “at will”. This means that no fixed term has been agreed upon, and the partnership will be terminated based on the conditions for termination as set out in the partnership agreement. That is, by agreement between the parties, on the death or permanent incapacity of a partner, or other provision.
Although relatively rare, some partnerships are for a fixed term. An example of where this may be appropriate is where individuals, or individual companies, agree to form a partnership for the purposes of working on a specific project. This optional clause can be used where a partnership is created for a specific project and therefore its duration is for a fixed term.
Using this precedent
This clause can be inserted into a partnership agreement, and can be used to add a fixed term to the commencement 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 Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.