Business Partnership Agreement by EasyLegalDocs
This template is a Business Partnership Agreement designed for two individuals forming a general partnership. It outlines the partnership's formation, business purpose, capital contributions, profit and loss allocation, management structure, and procedures for dissolution and dispute resolution. It serves as a foundational legal document for establishing a new business venture between partners.
BUSINESS PARTNERSHIP AGREEMENT
This Business Partnership Agreement ("Agreement") is made and entered into as of [effective date],
BY AND BETWEEN: | Partner 1: [partner 1 name], residing at [partner 1 address]; |
AND: | Partner 2: [partner 2 name], residing at [partner 2 address]. collectively referred to as the "Partners" and individually as a "Partner." |
Partnership Formation
The Partners agree to form a general partnership ("Partnership") under the name [partnership name]for the purpose of conducting [business purpose] in accordance with the laws of the state of [governing law state].
Business Purpose
The Partnership shall engage in ____________________________________________________________________________________________________________________________________________________________ and any other lawful activities agreed upon by the Partners.
Term
This Agreement shall commence on [effective date] and shall continue until terminated as provided herein.
Capital Contributions
Each Partner shall contribute the following capital:
Partner 1, [partner 1 name]: $ [partner 1 capital amount]in (circle one) cash/property/services.
Partner 2, [partner 2 name]: $ [partner 2 capital amount] in (circle one) cash/property/services.
Additional contributions may be required upon unanimous agreement.
Profit and Loss Allocation
Profits and losses shall be divided [profit sharing ratio] among the Partners unless otherwise agreed in writing.
Management and Decision-Making
All business decisions shall be made by majority vote.
Each Partner shall have equal authority unless specified otherwise.
Bank Accounts & Financial Management
The Partnership shall maintain a business bank account at ______________ and all Partnership funds shall be deposited therein. Any withdrawals over $______________ require the approval of ____________________________.
Salaries and Distributions
The Partners may draw a salary or distributions as agreed upon. No Partner shall withdraw more than their share of profits unless approved by all Partners.
New Partners & Transfers
Admission of new Partners requires majority consent. No Partner may transfer their interest without the written approval of all other Partners.
Dissolution & Exit Strategy
The Partnership shall dissolve upon:
a) Mutual agreement of the Partners,
b) Death, bankruptcy, or incapacity of a Partner (unless the remaining Partners agree to continue),
c) Any event making the business unlawful.
Upon dissolution, all debts shall be paid, and remaining assets distributed proportionally.
Dispute Resolution
Any disputes shall first be resolved through mediation. If unresolved, disputes shall be settled via binding arbitration in [arbitration location].
Governing Law
This Agreement shall be governed by the laws of the state of [governing law state].
Miscellaneous Provisions
This Agreement represents the entire agreement between the Partners.
Amendments must be in writing and signed by all Partners.
If any provision is found unenforceable, the remaining provisions shall remain valid.
SIGNATURES
Partner 1 | Partner 2 |
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United States note
This version is drafted for US law generally. Contract, employment and consumer rules vary by state — for example on non-competes and at-will employment. Tell GitLaw which state applies and it adjusts the draft.
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