Admission Of A New Partner Agreement

A legally binding agreement between the existing partners of a partnership and a new partner that joins the partnership business which serves to formalise and regulate the new business relationship between the partners.

An Admission of New Partner Agreement is a legally binding agreement made between the existing partners of a partnership and a new partner that joins the partnership business. It governs the business relationship between the existing partners and the new partner, serving to formalise and regulate the new business relationship between the partners. The Admission of New Partner Agreement sets out the terms and conditions of the new partner, as well as the new participation ratio’s of each partner. There are no formal rules applicable to these agreements and a written agreement is not a legal requirement. However, an Admission of New Partner Agreement is essential in ensuring the continued smooth running of the partnership, ensuring the security of the partners’ position in the partnership, as well as reducing disputes amongst the partners and providing certainty regarding the consequences of any actions by the other partners.

This agreement contains the following clauses:

1. Definitions
2. Admission Terms
3. Governing Law and Jurisdiction
4. Whole Agreement – No Amendment
5. Counterparts
6. Notices
7. Costs
8. Signatures

Related Documents:

• Partnership Agreement