Free Partnership Deed Agreement Template and Contract
A Free Partnership Template
I have been searching for a webpage that offered a free partnership template for a few days now. Whilst many have claimed to offer free partnership templates they all end up trying to charge you money.
A partnership deed is used when you want to start a business with an associate and want to have more than one person act as the owner or director. This is used in the case of family businesses, husband and wife partnerships or even just friends looking to start a business together.
After finally paying someone to draft me one, I have decided to make this partnership deed available for everyone for free.
Partnership Deed Template
This Deed of Association of Partner’s is signed at LOCATION this DATE by and between the following person’s having been mutually agreed to become Partners upon following terms and conditions:-
1-Names and Addresses of All Partners here
1. NAME: The name of the Partnership shall be “Company Name”
2. BUSINESS AND PLACE: That the Partnership business shall be to set up, establish, organize, manage and operate the lawful business activities for profit including but not limited to the following:
a) To carry on and undertake the business of Mineral Drinking Water
b) To borrow or raise funds by means of loans or other legal arrangement from the banks and approved financial institutions in all legal forms for the purposes of partnership business.
c) Any other business that may be deemed appropriate by the partners from time to time.
And to carry all other businesses, activities, operations etc. connected to or incidental with the businesses abovementioned.
And shall be carried on at Business Address or at such other place(s) as all the Partners my from time to time agree upon.
3. TERM: The term of Partnership shall be at will.
4. CAPITAL: The capital of the Partnership shall be provided by and belong to the Partners in the following share:-
(1) Partner 1 20 %
(2) Partner 2 20 %
(3) Partner 3 20 %
The above ratio / percentage shall be the profit sharing. However, if any time hereafter any further capital shall be required for the purpose of the partnership, the same shall unless otherwise agreed in writing by all Partners, be contributed by the parties hereto in same proportion / percentage as described above.
5. PROFIT AND LOSSES:The profit and losses of the Partnership (including the loss of capital) shall be divided between and borne by the Partners in proportions / percentages agreed in paragraph 4 above.
6. DRAWING BOOKS OF ACCOUNTS: All necessary and proper books of accounts shall be kept properly posted up and shall not be removed from the place of business without the consent of the Partners and each partner shall have access to and shall be entitled to take copies of and extracts from such accounts books.
7. ANNUAL ACCOUNTS: within three months from the end financial year, during the continuance of the Partnership, an account shall be taken of all capital assets and liabilities and of profits and losses of the Partnership in accordance with the Generally Accepted Accounting Principles, which account shall be signed by all Partners. Such account when signed shall be binding on all partners unless there is some manifest error.
8. DUTIES OF PARTNERS: Partners shall jointly conduct the business of the partnership. It will be lawful for Partners to carry on other businesses so far as those are not in direct Partners(s) to act as Executive Partner(s) to perform full time duties of the Partnership business on mutually agreed terms and conditions. In such a case, the Executive Partner(s) shall be required to intimate this fact to the other partner(s) who will not unreasonably hold back their approval. In the event of a disagreement or dispute between the Partner(s) and the Executive Partner(s) in this regard, the same shall be settled in accordance with the provisions of paragraph14. Where an Executive Partner(s) wishes to resign from her duties, he must give at least 3 months notice in advance to the other Partner(s).
9. RULES GOVERNNING ANY FINANCIAL ASSISTANCE OTHER THAN EQUITY: the partnership may enter into any financial assistance / financing from banks or DFI etc with the mutual consents of all Partner(s). The partners jointly, shall have the authority to sign all documents necessary for the purpose of above financial assistance / financing including but not limited to agreements, deeds, letters of hypothecation, charge, promissory notes etc. Also, Partner(s) may also be required to inject financial assistance by way of short / long term liquidity support, which will be done in proportion to the profit share agreed in paragraph for above. Any such financial assistance made by Partners shall be repaid, prorate split in proportion to the amount o financial assistance extended by each partner(s), as priority to drawings by other Partners excluding salaries paid to Executive partners(s), if any.
10. DECISION-MAKING: While making decisions on various aspects, consensus of all the above mentioned Partners should be obtained, however in case of difference of opinion, the matter may be decided with mutually agreed mediator.
11. LIMITES OF AUTHORITY AND AUTHORIZED SIGNATURES: The day to day business of this partnership shall be run by the majority decision of the partner’s. However, the bank account‘s shall be opened, managed and operated by any three partner’s jointly who have been specifically authorized in this respect by the association partner’s that is Company Name
12. RULES TO BE FOLLOWED IN CASE OF RETIREMENT, RESIGNATION, DEATH AND ADMISSION OF A PARTNER: The partnership shall not be dissolved upon retirement, resignation or admission of a new Partner(s). In such eventualities, Partnership shall be deemed to constitute the remaining Partner(s) only if the majority of remaining Partner(s) so opt in writing and file the requisite addendum before the Register of Firms. Thereafter, the resigning / retiring partner(s) shall no more be and, in case of admission, the partner(s) so admitted shall become the Partner(s).
13. In case of death of a partner(s) or in case he becomes permanently disabled from performance of her duties on account of any physical or mental disability, the Partnership shall stand dissolved. However, the remaining Partners. After rendering complete accounts to the legal heirs and after settling the account of the deceased Partner in favor of her legal heirs fully and finally, may if they so desire, enter into a new deed. The deceased Partner(s) shall have no right whatsoever in the new business. The Partners hereby bound themselves and their legal heirs accordingly. Settlement of account of the deceased partner(s) in favor of her legal heir(s) shall be made as soon as possible but no later than six months from the closer of the financial year in which the Partner(s) dies.
14. SETTLING OF DISPUTES IF ANY AMONG PARTNERS: i.e. whether or not an arbitrator is to be appointed. Disputes shall first be settled amongst the Partners themselves who must all unanimously agree on a resolution. In case of deadlock the dispute shall be referred to arbitration in accordance with the law by a sole arbitrator to be appointed by consensus of Partners.
15. All notices required to be given to either Partner(s) hereunder shall be duly served if deposited, addressed to such Partner(s), at the office of the Partnership, or if sent by TCS and / or registered post to their addresses aforementioned.
16. Any other matter for which no provision is made in this Partnership Deed shall be decided mutually by the Partner(s), however, efforts shall be made to make the matter consistent with this Deed and the provisions of Partnership Act, 1932.
The Partnership shall not be responsible for any past, present or future personal encumbrances and liabilities of any of the Partner(s).
In witness whereof the parties hereto have set their hands to this Deed the day, month, and year first mentioned.
1. _________________________ 1. _____________________________
2. _________________________ 2. _____________________________