General Partnership Contract Sample
If you`re planning to start a business with another person, you may want to consider forming a general partnership. This type of partnership gives each partner an equal say in the decision-making process, as well as an equal share of the profits and losses.
To form a general partnership, you`ll need to create a partnership agreement or contract. This document outlines the rights and responsibilities of each partner and helps to avoid conflicts down the line. Here`s a general partnership contract sample to give you an idea of what to include:
1. Partnership Name
The contract should start by naming the partnership and identifying the partners involved.
2. Purpose of the Partnership
This section should describe the purpose of the partnership and what business activities it will engage in.
3. Capital Contributions
Partnerships require some initial investment to get off the ground. This section should specify the amount of capital each partner will contribute and when those contributions are due.
4. Profit and Loss Sharing
Since general partnerships are typically 50/50 arrangements, this section should outline how profits and losses will be divided equally among the partners.
5. Decision-Making Authority
This section specifies how the partners will make decisions regarding the partnership. Will all decisions require the unanimous consent of both partners, or will certain decisions be made by one partner with the other`s input?
6. Management Roles
The partnership agreement should spell out each partner`s role in managing the business. Will one partner be responsible for day-to-day operations, or will both partners have equal management responsibilities?
7. Duration of Partnership
Partnerships don`t last forever, so it`s important to specify how long the partnership will last and under what circumstances it can be terminated.
8. Dissolution of Partnership
This section should outline what happens if the partnership is dissolved, including how assets are divided and how debts are paid off.
9. Non-Compete and Confidentiality Clauses
Partnerships require a great deal of trust, so it`s important to include clauses that protect the partnership`s confidential information and prevent partners from competing with the partnership.
10. Dispute Resolution
Finally, the partnership agreement should include a dispute resolution mechanism in case conflicts arise in the future. This could be anything from a mediation clause to an arbitration clause.
Overall, a general partnership contract serves as a blueprint for the partnership, outlining the rights and responsibilities of each partner and helping to avoid conflicts down the line. While it`s important to have a lawyer review your partnership agreement, this general partnership contract sample should give you a good starting point.
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