If you set up in business with one or more other people but do not wish to set up a limited company, a partnership arrangement will be deemed to exist at law without the need for a formal contract. However, whilst a written partnership agreement is not required to form a partnership, if you wish to avoid uncertainty and the automatic application of potentially unsuitable statutory law, a formal agreement is a wise investment. What happens if we don’t sign a Partnership Agreement? In the absence of a written agreement, the provisions of the 1890 Partnership Act will apply. In essence, it states that all the partners are equal and share profits, losses, start-up and running costs as well as the workload equally.