Sample Form of Partnership Agreement

Posted by: admin | Posted on: november 25th, 2021 | 0 Comments

A partnership agreement is a legal document that outlines the terms and conditions of a business partnership. It is a formal agreement between two or more partners who wish to start a business together and details the rights, responsibilities, and obligations of each partner.

If you are starting a new business with a partner, it is essential to draft a partnership agreement to avoid any misunderstandings or disputes that may arise in the future. To help you get started, here is a sample form of a partnership agreement:

1. Introduction

The introduction section should state the names and addresses of all partners involved in the partnership.

2. Purpose of the partnership

This section should outline the purpose of the partnership, the business activities to be conducted, and the goals the partnership hopes to achieve.

3. Capital contributions

Partners should agree on the amount of capital each partner will contribute to the partnership, the form of contribution (cash, property or services), and the schedule for contributions.

4. Distribution of profits and losses

Partners should agree on how profits and losses will be distributed among them. This section should outline the percentage of profits and losses each partner is entitled to and the method for distributing them.

5. Management and decision-making

Partners should agree on who will manage the partnership, the decision-making process, and the extent of each partner`s authority and responsibilities. This section should also outline the procedures for resolving disputes between partners.

6. Withdrawal and dissolution

Partners should agree on the terms and conditions for withdrawing from the partnership, including the notice period and the payment of capital and profits. In case of dissolution, partners should agree on the procedure for winding up the partnership and distributing remaining assets.

7. Confidentiality and non-competition

Partners should agree on the protection of confidential information and the restrictions on competition among partners and their employees.

8. Governing law and jurisdiction

Partners should agree on the governing law and jurisdiction of the partnership agreement.

9. Amendments to the partnership agreement

Partners should agree on the procedures for amending the partnership agreement.

Conclusion

A partnership agreement is an essential legal document that protects the interests of all partners involved in a business venture. By drafting a partnership agreement, partners can avoid misunderstandings, resolve disputes amicably, and ensure the success of their business. As such, it is highly recommended to consult with a legal professional and create a partnership agreement before beginning any business activities.