This template partnership agreement is an agreement between the partners of a business setting out in detail their individual and collective rights and obligations towards each other and the partnership. A partnership agreement such as this is required for a business partnership to be set up.
This comprehensive 10-page template partnership agreement, which can be downloaded immediately (without signing up), covers a range of standard issues, for example management and communication, partners’ duties, capital contributions and profit share, as well as a range of eventualities and scenarios including retirement and expulsion. Additionally, the partnership agreement contains a number of (optional) restrictions for outgoing partners and some detailed ‘good practice’ provisions for issues such as ethics, conflicts of interest and confidentiality. The template is designed to be easily edited or expanded based on your individual requirements.
Contents of the Partnership Agreement Template
- Title, date, parties, recitals
- Definitions and interpretation
- Background, specifying the purpose of the partnership, the term of the partnership, and trading name
- Management and communication, covering how the partnership will be managed, actions that require unanimous or majority voting, how partner meetings can be called, disputes, and non-participation
- Duties, stating what is expected of all parties such as their contact availability, records and accounts, and conflicts of interest
- Holidays, for example covering holiday allowance and notification requirements
- Capital, detailing the partners capital contributions and how capital should be handled
- Profit, remuneration and expenses, how partners should share profit, allowed drawings, salaries and expense reimbursement
- Banking, covering the partnership bank and handling payments and cheques
- Retirement, specifying the terms of automatic and voluntary retirement
- Expulsion, how and why a partner may be expelled
- Effects of retirement or expulsion, detailing how an outing partner’s capital contributions are repaid, final profit share, removal from the partnership, and a number of other provisions
- Restrictions, preventing an outgoing partner from certain things, for example solicitation of partnership business
- Indemnity, covering each partner’s indemnity and obligation to pay their private debts
- Ethics, covering in detail how a partner is expected to behave towards a number of conflicts of interest
- Confidentiality, restricting confidential information and trade secrets within the partnership
- Miscellaneous, for example legal costs, methods of notice, statement of entire understanding, waiver, enforceability, and jurisdiction
- Schedule – Capital contributions of each partner, profit share, and salary
FREE Sample of the Partnership Agreement Template
Download a FREE sample of this partnership agreement template to check that it is what you are looking for before buying.