An agreement between partners of a firm in which all the terms and conditions of the partnership business and the relationship subsisting between the partners is decided, is known as a partnership agreement. Whenever you enter into a partnership business, it is very important to get that partnership properly registered. For this purpose, a partnership agreement is used and such a partnership agreement is agreed to and signed by each partner. A partnership agreement must be registered in order to protect and secure the interests of all partners and to avoid any disputes. Instead of drafting a complete partnership agreement, partners can also use a partnership agreement template of their choice.
A partnership agreement template would state the complete name of partnership, nature or type of partnership, contributions by each partner and most importantly, the rights and duties of all the partners. A verbal partnership agreement is also legally enforceable but it is recommended to have a properly written partnership agreement. It is because a verbal agreement is very difficult to prove as compared to a written agreement that in itself is a sufficient evidence to prove the existence of a partnership. Scroll down to know more about the partnership agreement and also make sure to check out the given below partnership agreement templates.
Practical Partnership Agreement Templates
Formal Partnership Agreement Template
Partnership Agreement Form Template
School’s Partnership Agreement Template
Extensive Partnership Agreement Template
Business Partnership Agreement Template
General Partnership Agreement Template
Sample Partnership Agreement Template
Real Estate Partnership Agreement Template
Cooperative Partnership Agreement Template
Exclusive Partnership Agreement Template
Typical Partnership Agreement Template
Example Partnership Agreement Template
Approprite Partnership Agreement Template
Routine Partnership Agreement Template
Important Elements of a Partnership Agreement Template
While drafting a partnership agreement template, following important elements must be present in it:
1. Name:
First of all, the partners shall, by mutual understanding and consent, decide that with what name, they would want to register their partnership business.
2. Capital Contribution:
In partnership agreement template, the amount of capital that each partner agreed to contribute or introduce in the partnership business, must be properly mentioned. The amount of capital must be written in front of names of every partners.
3. Share in profit or loss:
The partnership agreement should state the profit sharing ratio of the partners. The partners can, by mutual agreement between them, share the profits in any way they like. Share in profit also means share in loss, but some partners, by mutual agreement of all the partners, can be exempted from contributing in any loss of the business, which is a separate issue.
4. Authority of Partners:
The authority of each partner should be clearly stated in the partnership agreement. Moreover it must also be made clear that whether or not, a partner require permission of other partners while entering into a transaction on behalf of the firm.
5. Rights and Responsibilities of Partners:
The partnership agreement should clearly state all the rights, duties, liabilities and responsibilities of all the partners of the partnership business. There must be no confusion between the partners regarding their rights and duties.
6. Admission of New Partners:
The partnership agreement should clearly state that how any new partner or partners will be admitted to the existing partnership business.
7. Death or Withdrawal of Partners:
The partnership agreement must also make clear what to do in case of death or withdrawal of a partner or partners.
8. Resolving the issues:
During the partnership, partners may have many conflicts or issues between them. So, the partnership agreement should explain how such issues or conflicts will be resolved by the partners among themselves.
Effective Partnership Agreement Templates
Usual Partnership Agreement Template
Internal Partnership Agreement Template
Legal Services Partnership Agreement Template
Details of Partnership Agreement Template
Sample Partnership Deed Template
Partnership Agreement Format
Detailed Partnership Agreement Template
Standard Partnership Agreement Template
Agency Partnership Agreement Template
Limited Partnership Agreement Template
Typical Partnership Agreement Template
Exclusive Partnership Agreement Template
Benefits of having a Partnership Agreement
A partnership agreement is important for a various number of reasons. Some of these reasons are given below:
- The most important benefit of a partnership agreement is that it avoids many legal issues.
- When the partners know their rights and responsibilities, they are likely to focus more towards the growth and development of the business.
- A partnership agreement can be adjusted or amended any time it is needed to be changed. So, that way it is easy to deal with the changes or developments.
- In the presence of a partnership agreement, disputes or conflicts can be dealt with in an easier way.
- The admission of any new partner or partners is properly made and in accordance with the terms and guidelines of a partnership agreement. Certain conditions or requirements must be fulfilled in order to get admitted to the existing partnership business.
- In the presence of a partnership agreement, the rights and liabilities of a partner withdrawing from the partnership or of a deceased partner, can be easily measured.
