Partnership Agreement Templates - 21 Free Samples or Templates

Download these Free Partnership Agreement Templates to help you draft your legal agreement for business or any suitable purpose.

Partnership is a lawful affiliation that exists between two or more persons to carry on a business on mutual terms. Business can be an occupation, trade, or profession that is carried on by two or more persons with mutual consent to share profit and loss equally according to their investment. To diminish the chances of conflicts, it is necessary to prepare a partnership deed to address the rights, duties, responsibilities, and profit as well as the loss share of each partner. Written partnership deeds will help you to solve all problems smoothly without any major problems. A partnership deed is an important document because it states terms and conditions that will bind you to follow them till the dissolution of the partnership. It is an essential requirement of a partnership business and you can write it personally without the help of any lawyer.

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Key Elements of Partnership Deed

The core purpose of a Partnership deed is to protect the interests and rights of all business partners. Therefore it is necessary to write it in the favor of all parties. It should be signed by all partners and the following are important elements of a partnership deed:

Date of Agreement:

Do not forget to write the date on which the agreement was signed because it is one of the important elements of the partnership deed.

Description of Partners:

Describe how this partnership is beneficial for each partner and describe the process through which each partner gets benefits according to his/her share.
Write the age of all partners with legal proof to indicate that all individuals are mature enough to make their own decisions.
Write the name of the business and briefly explain the nature of your business.
It is necessary to make sure that there is no legal or social conflict with an existing company name.
You have to make sure that you understand the structure and logistics of your organization and this should be done before the registration of your company name.
Develop all instructions about the name of the organization after the death of the partner(s).

Term of Partnership:

It is necessary to address all possible questions such as:

Duration of partnership (When does it start and for how much period).
Termination date of partnership and the process to distribute all assets and liabilities among partners.
Possible solutions in case of breach of any terms of partnership deed.
In case of partnership dissolution, who will keep the name of the business?

Location of Business:

Mutually decide the location of your headquarters and your servicing area.
Make sure to consider the proximity of each partner while deciding the location of your business.
Address all traveling needs and costs of your business in the partnership deed to avoid any future conflict.

Business Purpose of Partnership:

Describe legit business activities, provisions for future changes in business activities and explain the limitations of all business activities.

Capital Contributions from Each Partner:

It is necessary to clearly state the form of capital such as cash, asset, vehicle, etc.
Write the percentage of contribution of all partners to share profits and losses equally to avoid any future conflict.
Also, write specific dates when these contributions will be delivered and it is also important to take notes about nonmonetary contributions and their interest.
Write all provisions for married and diet partners to distribute their share of profit and loss.
Do not forget to write the provisions for the repayment of debt (if any).

Operational Contribution from Each Partner:

Write details of the role for which each partner is responsible regularly.
Write the name of the cheque signing authority and controller of financial records. Discuss the disclosure process for other partner(s).
Write the name of the person(s) who will make recruitment and termination decisions, marketing decisions, and purchase decisions (capital and noncapital).

Compensation of Partners

Discuss the compensation package for each partner along with the allocation of perks, personal expenses, and use of the company’s property.

Disagreement Arbitration

Clearly explain the process to follow in case of disagreement.
List the name of the mediator who is empowered to make a binding decision.
Mention the name of the person who will choose the venue in case of legal action.