Last updated November 1, 2022
What is a Partnership Amendment?
A Partnership Amendment is a document that allows you to modify, add, or remove terms in a Partnership Agreement. It’s often attached to an existing Partnership Agreement to reflect any changes.
A Partnership Amendment is also known as a Partnership Addendum.
When should I use a Partnership Amendment?
You can use a Partnership Amendment when a company’s partners want to change their current Partnership Agreement. Whether the amendment requires the approval of all the partners or a certain number of partners will depend on how your company makes decisions on the specific term or policy being modified, added or removed.
Some circumstances that can require a Partnership Amendment include the following:
- Adding a partner
- An existing partner exiting the partnership
- Changing the company’s name
- Changing the objectives of the business
- Discovering errors in the Partnership Agreement
- Updating any part of the Partnership Agreement
What if there have been previous amendments in the Partnership Agreement?
If your partnership has made amendments to its agreement in the past, you need to note the previous changes in the most recent addendum. Attach the amendments to the back of the Partnership Agreement with the most recent amendments at the front. Keeping them orderly helps ensure there’s no confusion over which changes are currently in effect.
If your partnership requires significant changes to multiple terms, consider creating a new Partnership Agreement.
How do I write a Partnership Amendment?
You can easily create a Partnership Amendment by completing LawDepot’s questionnaire. Using our template ensures you complete the following necessary steps.
Step 1: State if there have been previous amendments made to the Partnership Agreement
Your Partnership Amendment needs to state whether this is the first time you're making changes to your Partnership Agreement and how many times you've modified it.
If you’ve made more than five previous amendments, you might want to consider creating a whole new agreement.
Step 2: Include where your partnership is based
Select the province in which your partnership operates. Each province has its own partnership act, and LawDepot will tailor your amendments to comply with your location's governing rules and regulations.
The partnership acts in force in each province and territory are linked below:
Step 3: Provide details about the partnership
So there’s no confusion over which Partnership Agreement you’re amending, your document needs to include key details about the partnership. Be sure you include the partnership’s:
- Name
- Address
- Purpose
- Start date
Step 4: Include details about the partners
Your document needs to include the names of all the partners. Each partner will be listed as a witness to the amendments and must provide their signature.
Include each partner’s name, address, and whether they’re an individual or business entity (e.g., a corporation or another general partnership).
Step 5: Describe the amendment(s) you’re making
Specify which clauses you're amending and what the changes are. When writing amendments, consider these tips:
- Limit your clauses to one paragraph. If you need a second paragraph, add another clause.
- Make a note of any defined terms in the Partnership Agreement (identified by capital initial letters) and use these consistently in the amending clauses.
- Identify any clauses you are amending by referencing the clause number or section heading in the Partnership Agreement.
- Don't use personal pronouns (e.g., we, you, they, our), as the meaning can be ambiguous. Instead, use defined terms when referring to the parties in the agreement.
Step 6: Include necessary additional clauses
You can also include additional clauses that aren’t amending existing clauses in your Partnership Agreement if necessary.
Step 7: Sign the document
Complete your amendments by having all the partners sign the document.
Although witnesses aren’t required to make the changes legally binding, you can include them if you wish.
