A partnership agreement is a legal document that outlines the terms and conditions of a partnership between two or more parties. It is a crucial document that helps avoid confusion and disputes, and it is important that it be drafted carefully to ensure that all parties understand their rights and obligations.
When drafting a partnership agreement, it is important to include specific details about the partnership, such as the name of the parties involved, the purpose of the partnership, the obligations of each party, and the duration of the partnership. To help you draft a comprehensive partnership agreement, we have provided a sample letter that you can use as a guide.
[Your Company Letterhead]
[Partner’s Name and Address]
Dear [Partner’s Name],
We are pleased to inform you of our interest in forming a partnership with your company. As we embark on this journey, we believe it is important to have a partnership agreement that outlines the terms and conditions of our partnership.
The partnership will be known as [Partnership Name], and it will be formed for the purpose of [Partnership Purpose]. The partnership will commence on [Start Date] and will end on [End Date]. [Partner`s Name] will provide [Partner`s Obligations] and [Your Company] will provide [Your Company`s Obligations] for the partnership.
Ownership and Profits
The ownership of the partnership will be divided as follows: [Partner`s Name] will have [Percentage] % ownership, and [Your Company] will have [Percentage] % ownership. All profits and losses of the partnership will be shared equally between the parties, unless otherwise agreed upon in writing.
Management and Decision-Making
The partners will share the management and decision-making of the partnership equally. All major decisions pertaining to the partnership will be made jointly by the partners. In the event of a disagreement, the decision of the majority will be followed.
Liability and Termination
The partners will be jointly and severally liable for all debts and obligations of the partnership. The partnership may be terminated by mutual agreement between the parties, or upon the occurrence of any of the following events: [Termination Events].
Confidentiality and Non-Competition
The partners will maintain confidentiality of all partnership information, and will not disclose any information to any third party without the written consent of the other partner. The partners agree that they will not compete with each other during the term of the partnership, and for a period of [Non-Competition Period] after the termination of the partnership.
Governing Law and Dispute Resolution
This partnership agreement shall be governed by and construed in accordance with the laws of the state of [Governing Law]. Any disputes arising out of or in connection with this agreement will be resolved through arbitration, in accordance with the rules of the [Arbitration Authority].
This sample letter serves as a guide to drafting a comprehensive partnership agreement. It is important to seek the advice of a legal professional to ensure that your partnership agreement meets your specific needs and complies with local laws and regulations.