You and four friends (James, Peter, Graham and Roger) have decided to open a Beatles memorabilia shop.    You have decided that it will be a partnership, with each partner contributing $5,000 each as a set up cost.  No additional investment money will be asked from the partners.    Peter, Graham and Roger do not want to have anything to do with the running of the shop. They only want to be investors.

You have planned an upcoming meeting in which you need to explain to all of them their financial and legal liabilities, and to provide them with key points to be included in a written partnership agreement that you think is suitable.

List the main points you should include in the partnership agreement in relation to the following:

  • Financial contributions to the partnership
  • Authority of partners to purchase items for the shop
  • Decisions the partners will make in relation to the shop.

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