Preliminary Partnership Agreement Template for England and Wales

A Preliminary Partnership Agreement under English and Welsh law is a formal document that establishes the initial framework for a business partnership before the final partnership agreement is executed. It outlines key terms, responsibilities, and expectations between prospective partners, including capital contributions, profit sharing arrangements, and management structure. This document serves as a stepping stone towards a full partnership while providing legal protection during the preliminary stages of business formation.

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What is a Preliminary Partnership Agreement?

The Preliminary Partnership Agreement is essential when two or more parties intend to form a business partnership but need to establish preliminary terms while conducting due diligence or finalizing business plans. This document, governed by English and Welsh law, typically includes provisions for initial capital contributions, management responsibilities, and confidentiality obligations. It serves as a crucial stepping stone before the execution of a full Partnership Agreement, providing legal certainty during the preliminary phase while allowing flexibility for final arrangements.

What sections should be included in a Preliminary Partnership Agreement?

1. Parties: Identification and details of all prospective partners

2. Background: Context and purpose of the preliminary partnership

3. Definitions: Key terms used throughout the agreement

4. Purpose of Partnership: Intended business activities and objectives

5. Duration: Term of the preliminary agreement

6. Capital Contributions: Initial and planned financial commitments

7. Management Structure: Basic governance and decision-making framework

What sections are optional to include in a Preliminary Partnership Agreement?

1. Non-Compete Provisions: Restrictions on partners engaging in competing business activities, used when partners have existing business interests in similar sectors

2. Intellectual Property Rights: Treatment of existing and future IP, essential when IP is crucial to the business

3. International Operations: Cross-border considerations and requirements for international business operations

What schedules should be included in a Preliminary Partnership Agreement?

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments

2. Schedule 2: Business Plan: Preliminary business plan and projections

3. Schedule 3: Partner Details: Detailed information about each partner

4. Appendix A: Due Diligence Requirements: List of required documentation and verifications

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Alex Denne

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Venture Partner Agreement

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Generate a Bespoke Document

Download a Standard Preliminary Partnership Agreement

Review your own Preliminary Partnership Agreement

What is a Preliminary Partnership Agreement?

What sections should be included in a Preliminary Partnership Agreement?

What sections are optional to include in a Preliminary Partnership Agreement?

What schedules should be included in a Preliminary Partnership Agreement?

Authors

Alex Denne

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