Partnership Amendment Information
What is a Partnership Amendment?
A Partnership Amendment, also called a Partnership Addendum, is used to modify, add, or remove terms in a Partnership Agreement.
When is a Partnership Amendment Used?
A Partnership Amendment is used when there is a change to the terms of an original Partnership Agreement between two or more general partners. The partners agree to use an addendum to reflect their new understanding. A Partnership Agreement can be amended at any time, so long as all partners agree to the amendments in a unanimous vote.
Who Should use a Partnership Amendment?
Two or more partners who have entered into a business partnership through a formal Partnership Agreement should use a Partnership Amendment if they wish to revise terms in the original agreement.
Partners can be individuals, corporations, Limited Liability Companies (LLCs), or other general partnerships.
What if There Have Been Previous Amendments?
If the Partnership Agreement has been amended before, it's important to note in the most recent addendum that there have been previous amendments. The order of the amendments helps to ensure that the document is up-to-date. All amendments should be attached to the original Partnership Agreement.
What is Included in a Partnership Amendment?
The following information is generally included in a Partnership Addendum:
- Governing law
- Partnership details, such as its name, purpose, and contact information
- Number of previous amendments
- Partners' details and type (individual or business)
- The amendments
- Method of dispute resolution
In order to avoid going through the courts to resolve a conflict, partners can choose to use the following two methods of dispute resolution:
Mediation: through use of a third party, known as a mediator, each party provides their side of the story and the mediator attempts to help both parties find a solution.
Arbitration: both parties submit their conflict to a third party arbitrator, who makes the final decision on how to resolve the dispute.