A business partnership is an agreement between two or more individuals or entities to carry out a business venture together. A partnership agreement is a legal document defining the terms and conditions of the partnership, including the roles and responsibilities of each partner, the share of profits and losses, and other important aspects of the partnership.
Here is a sample of a business partnership agreement:
1. Purpose of the Partnership
The purpose of this partnership is to carry out the business of [insert business description here] and to share the profits and losses arising from the business equally among the partners.
2. Name and Address of the Partnership
The name of the partnership shall be [insert name of partnership], and the address shall be [insert address of the partnership].
3. Term of the Partnership
The partnership shall commence on [insert date of commencement] and shall continue until dissolved by mutual agreement or by operation of law.
4. Capital Contribution
Each partner shall contribute [insert amount of contribution] as capital to the partnership, which shall be used for the business operations of the partnership.
5. Profits and Losses
The profits and losses of the partnership shall be shared equally among the partners.
The management of the business shall be conducted by [insert name of partner(s)], who shall be responsible for the day-to-day operations and decision-making of the partnership.
7. Dispute Resolution
Any disputes that may arise between the partners shall be resolved through arbitration, in accordance with the rules and procedures of the [insert name of arbitration body].
The partnership may be dissolved by mutual agreement of the partners or by operation of law. In the event of dissolution, the assets of the partnership shall be liquidated and the proceeds shall be distributed equally among the partners.
9. Governing Law
This agreement shall be governed by and construed in accordance with the laws of [insert name of state or country].
10. Entire Agreement
This agreement constitutes the entire understanding between the partners and supersedes all prior negotiations, understandings, and agreements between the parties.
A business partnership agreement is a necessary legal document that defines the terms and conditions of a partnership. It is important to have the agreement in writing in order to avoid misunderstandings and disputes that may arise in the future. The partnership agreement should be carefully drafted to ensure that it reflects the interests and expectations of all partners. With this sample as a guide, ensure you tailor your partnership agreement to the needs of your business.