A Simple Partnership Agreement Template Word

When starting a business with a partner, it`s essential to create a partnership agreement outlining the terms and responsibilities of each partner. A partnership agreement helps prevent misunderstandings and disagreements that may arise in the future. It also helps ensure that all parties are on the same page regarding the business`s goals and objectives.

In this article, we will provide a simple partnership agreement template word that you can customize according to your business needs.

Partnership Agreement Template

[Business Name]

Partnership Agreement

This agreement made and entered into this [date] by and between [partner 1 name] and [partner 2 name] for the purpose of conducting the [business name] business.

I. Purpose and Scope

The purpose of this agreement is to establish a partnership between the partners, which shall be engaged in the business of [business purpose]. The partnership`s scope shall include all activities related to the business, such as but not limited to, sales and marketing, customer service, inventory management, and financial management.

II. Capital Contributions

Each partner shall contribute to the partnership`s capital as follows:

[Partner 1 name] shall contribute [amount] in cash.

[Partner 2 name] shall contribute [amount] in cash.

III. Profit and Loss Sharing

The partners shall share profits and losses in the following manner:

[Partner 1 name] shall receive [percentage]% of the partnership`s profits and shall bear [percentage]% of the partnership`s losses.

[Partner 2 name] shall receive [percentage]% of the partnership`s profits and shall bear [percentage]% of the partnership`s losses.

IV. Management

The partners shall manage the partnership`s business and affairs jointly. Decisions shall be made on a consensus basis, and each partner shall have an equal vote.

V. Term

This partnership shall commence on [date] and continue until terminated by mutual agreement or by the death or incapacity of either partner.

VI. Termination

In the event of the partnership`s termination, the partners shall liquidate the partnership`s assets and make payment of all partnership liabilities. The remaining assets shall be distributed to each partner in accordance with their respective capital contributions.

VII. Confidentiality

The partners shall keep the partnership`s business matters confidential and shall not disclose any information to third parties without the other partner`s explicit consent.

VIII. Amendments

This agreement may be amended only by the mutual agreement of the partners.

IX. Governing Law

This agreement shall be governed by and construed in accordance with the laws of [state]. Any dispute arising in connection with this agreement shall be resolved through arbitration in accordance with the rules of the American Arbitration Association.

X. Entire Agreement

This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements. This agreement may only be modified in writing and signed by both partners.

Conclusion

A simple partnership agreement template Word is an essential tool for business partners to protect themselves and their business. It sets the expectations and responsibilities of each partner and helps prevent misunderstandings. By utilizing this template, you can create a partnership agreement that suits your business needs. Remember to consult with an attorney before signing a partnership agreement.