some practices do not have a partnership agreement in place. in the absence of a formal partnership agreement, the partnership will be governed by the partnership act 1890 (the “act”) which effectively states that, unless there is a contrary agreement between the partners, the business is split equally. there is no reference in the act to sessions worked, holidays and sickness, or what items are partnership expenses or individual expenses. although the act covers most of the necessary ground in setting up a partnership, it does not cover all of it and some of its provisions are outdated. no agreement also means the partnership status is that of a “partnership at will”, so where a partner retires or dies the partnership will automatically dissolve. some practices have a partnership agreement but it is outdated and no longer caters for the business or how circumstances may have changed since it was first entered into.