Consultancy Partnership Agreement Template for England and Wales

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Key Requirements PROMPT example:

Consultancy Partnership Agreement

"I need a Consultancy Partnership Agreement for a new technology consulting venture between three senior IT consultants, with specific provisions for intellectual property sharing and client relationship management, starting from March 2025."

Document background
The Consultancy Partnership Agreement is essential when two or more parties wish to formalize their consulting business relationship under English and Welsh law. This document is particularly relevant when independent consultants or consulting firms decide to combine their expertise and resources in a partnership structure. The agreement covers crucial aspects such as profit sharing, management rights, service delivery obligations, and exit provisions, while ensuring compliance with the Partnership Act 1890 and related legislation. It provides the necessary legal framework to protect all parties' interests and establish clear operational guidelines.
Suggested Sections

1. Parties: Identification and details of all consulting partners

2. Background: Context of the partnership and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Partnership Structure: Details of partnership type, roles, and responsibilities

5. Duration and Term: Partnership commencement and duration

6. Financial Arrangements: Profit sharing, capital contributions, drawings

7. Management and Decision Making: Governance structure and voting rights

8. Obligations of Partners: Duties, commitments, and responsibilities

9. Termination: Conditions and procedures for ending the partnership

10. Confidentiality: Protection of partnership and client confidential information

11. Dispute Resolution: Procedures for resolving disagreements between partners

12. General Provisions: Miscellaneous legal provisions including governing law and notices

Optional Sections

1. Non-Compete Provisions: Restrictions on competing activities during and after partnership

2. International Operations: Rules and procedures for cross-border activities and jurisdictions

3. Intellectual Property Rights: Ownership and licensing of intellectual property created during partnership

4. Insurance Requirements: Required insurance coverage and maintenance obligations

5. Data Protection: Compliance with GDPR and data protection requirements

Suggested Schedules

1. Schedule 1: Partner Details: Detailed information about each partner including contact details and professional qualifications

2. Schedule 2: Capital Contributions: Initial and ongoing capital requirements and contributions

3. Schedule 3: Profit Sharing Ratios: Agreed distribution of profits and losses between partners

4. Schedule 4: Services Description: Detailed scope of consulting services offered by the partnership

5. Schedule 5: Partnership Policies: Internal policies, procedures and operational guidelines

6. Schedule 6: Client List: List of existing clients and any associated restrictions or obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Partnership Act 1890: Core legislation defining partnerships, establishing basic rights and obligations of partners, their authority and liability, and procedures for partnership dissolution

Limited Partnerships Act 1907: Legislation governing limited partnership structures, relevant if the consultancy partnership includes limited partners

Companies Act 2006: Applicable legislation when any partner is a corporate entity, governing corporate partners' responsibilities and obligations

Employment Rights Act 1996: Ensures proper classification of consultants and establishes clear distinction between employees and independent contractors

Equality Act 2010: Covers anti-discrimination provisions and equal treatment obligations within the partnership structure

Income Tax Act 2007: Governs tax treatment of partnership income and partners' tax obligations

IR35 Legislation: Deals with off-payroll working rules and tax status of consultants

UK GDPR and Data Protection Act 2018: Establishes data handling requirements and privacy obligations for personal data processed within the partnership

Copyright, Designs and Patents Act 1988: Protects intellectual property rights and establishes ownership of created works within the partnership

Common Law Contract Principles: Fundamental principles including offer, acceptance, consideration, and intention to create legal relations

Competition Act 1998: Regulates anti-competitive practices and market restrictions that might affect partnership operations

Money Laundering Regulations 2017: Sets out due diligence requirements and financial compliance obligations for partnerships

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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