Partnership Agreement (General)

Many people find themselves in an actual business partnership without even knowing it. Business partnerships are formed when two or more people carry on a business together or receive income jointly.

You may be the best of friends with the best intentions but a business partnership in many ways can be like a marriage. Business partners are generally liable for the obligations created by each other in the context of doing business. Partners have the authority to bind the partnership to legal arrangements and incur debts on behalf of the partnership, placing the personal assets of the partners at risk. Like a marriage its wise to choose your partners well.

Under Australian tax law you can be deemed to be partners simply by the conduct of the parties towards one another (TR 94/8).

This means if you want some control over your rights and how the partnership impacts on your personal financial situation, then it’s a wise move to have a PARTNERSHIP AGREEMENT (or partnership contract) in place.

What should be included in a business Partnership Agreement?

Your deed of partnership agreement needs to cover all the potentialities, including: What happens if one party wants to sell their share? How much of this business do you own and how much do the other partners own? How will the profits (or the losses) be split? What should happen upon the death of a partner and many other situations.

It's best to get these issues out on the table before they become a real problem or large amounts of money become involved. A partnership agreement that deals with these contingencies reduces the turmoil that usually accompanies a partnership dispute, by spelling out the rights and obligations of partners and eliminating the burden of uncertainty.

If you are thinking about a single, short-term project, our Joint Venture agreement maybe more suitable.

Your professionally drafted, easy to use Partnership Agreement is available for immediate download. The document comes to you as a Microsoft Word and PDF template that can be used as often as you like. Simply insert the correct information in the appropriate field and tab to the next. Now print your professional and legally binding agreement!

For a complete Business Partnership Agreement Kit that includes every contract and document you may need to form a partnership, please see our Business Partnership Management Kit

This Partnership Agreement defines rights, roles and responsibilities of each partner, clearly spelling out specific conditions that apply to the partnership. This means it protects the interests of those involved by putting in writing the following considerations:

Description of the Business The role and authority of each partner Amount of equity invested by each partner Entitlement to and share of profits Term of the partnership The principle place of business Banking arrangements Accounting/Valuation Principles Retirement/Death Arrangements

Provisions for changes or dissolving the partnership. The distribution of assets on dissolution The resolution of disputes Withdrawal of capital Loans Acts requiring majority consent Sale of partnership interest Conflicts of interest Confidentiality Governing Law

Sample Document Excerpt - click to enlarge

This agreement includes a complimentary copy (A $97 VALUE!) of R. P. Emery & Associates newly revised 5th Edition, "Contract Preparation Tips, Hints & Secrets" publication. It will show you in simple terms how to thoroughly cover important legal requirements, and how to complete an agreement in detail. In addition, it contains alternative legal clauses and provisions you can use Click here to read more about the book.

Your ready-to-use kit includes everything you need to formalize your Business Partnership

Our fully secured e-commerce system allows you to purchase and download your General Partnership Agreement safely. In just a few minutes you can have everything you need to clearly define the rights, resonsibilities and obligations of you and your partners.

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