Sample Copy of Partnership Agreement

A Partnership Agreement is a legal document that outlines the terms and conditions of a partnership between two or more parties. This agreement is crucial in any business endeavor as it helps to establish the rights and responsibilities of each partner, outlines the decision-making process, and creates a framework for the management of the partnership.

Here is a sample copy of a Partnership Agreement:

PARTNERSHIP AGREEMENT

This Partnership Agreement (the “Agreement”) is made and entered into on ________________ (date), by and between ___________________ (Partner 1) and ___________________ (Partner 2) (collectively referred to as the “Partners”).

RECITALS

WHEREAS, the Partners desire to form a partnership for the purpose of carrying on the business of _____________________ (business), and

WHEREAS, the Partners desire to establish the terms and conditions of their partnership.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Partners agree as follows:

1. FORMATION OF PARTNERSHIP

The Partners hereby agree to form a partnership under the name _____________________ (name of partnership) for the purpose of carrying on the business of _____________________ (business).

2. TERM

The Partnership shall commence on ________________ (start date) and shall continue until terminated by mutual agreement of the Partners or by operation of law.

3. CAPITAL CONTRIBUTIONS

Each Partner shall contribute capital to the Partnership in the amount of _____________________ (dollar amount) in cash or other valuable consideration.

4. ALLOCATION OF PROFITS AND LOSSES

The profits and losses of the Partnership shall be allocated among the Partners in proportion to their respective capital contributions.

5. MANAGEMENT

The Partners shall share equally in the management of the Partnership and shall each have the authority to bind the Partnership in all transactions entered into in the ordinary course of business.

6. DISSOLUTION

The Partnership may be dissolved by mutual agreement of the Partners or by operation of law.

7. ARBITRATION

Any disputes arising under this Agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association.

8. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of _____________________ (state).

IN WITNESS WHEREOF, the parties have executed this Partnership Agreement as of the date first above written.

Partner 1: _____________________

Partner 2: _____________________

CONCLUSION

A well-drafted Partnership Agreement can help to avoid disputes and misunderstandings between partners. By outlining the terms and conditions of the partnership, the agreement can help to establish a framework for the management of the business and ensure that each partner is aware of their rights and responsibilities. This sample copy of a Partnership Agreement can serve as a starting point for any business venture seeking to establish a formal partnership.