Free Partnership Agreement

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Create Your Free Partnership Agreement

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Partnership Agreement

Create your Partnership Agreement


Create your Partnership Agreement



Frequently Asked Questions
What is a Partnership Agreement?Your Partnership Agreement is an agreement between you and your partner(s) that sets out the duties and obligations of the partners to each other and to the partnership.Why have a written Partnership Agreement?The law presumes a partnership exists where two or more persons decide to work together for profit. The Partnership Act sets default rules for the operation of partnerships in Singapore which will apply unless there is clear agreement to the contrary between the parties.

As many of the statutory rules in the Partnership Act will likely not suit your circumstances, you should set out the terms of your partnership in a written agreement. For example, Section 25 of the Act says that: No majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners.
Do I need to register my Partnership Agreement?Your Partnership Agreement is a private contract between the partners and does not need to be registered. However, if your chosen business name is anything other than the full names of all the partners, you must register that name with the Accounting and Corporate Regulatory Authority (ACRA).


Your Partnership Agreement

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PARTNERSHIP AGREEMENT

THIS PARTNERSHIP AGREEMENT (the "Agreement") made and entered into this ________ day of ________________, ________ (the "Execution Date"),

BETWEEN:

____________________________ of ___________________________________________________________________, and
____________________________ of ___________________________________________________________________
(individually the "Partner" and collectively the "Partners").

BACKGROUND:

  1. The Partners wish to associate themselves as partners in business.
  2. This Agreement sets out the terms and conditions that govern the Partners within the Partnership.

IN CONSIDERATION OF and as a condition of the Partners entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the parties to this Agreement agree as follows:

  1. Formation
  2. By this Agreement the Partners enter into a general partnership (the "Partnership") in accordance with the laws of Singapore. The rights and obligations of the Partners will be as provided under the common law and as stated in the Partnership Act (Chapter 391) and any other applicable legislation (the "Act") except as otherwise provided in this Agreement.
  3. Name
  4. The firm name of the Partnership is: _____________________
  5. Purpose
  6. The purpose of the Partnership is: ___________________________________
  7. Term
  8. The start date of the Partnership is 28 September 2022 and the Partnership will continue until terminated as provided in this Agreement.
  9. Place of Business
  10. The principal office of the business of the Partnership will be located at ____________________________________________________________ or such other place as the Partners may from time to time designate.
  11. Capital Contributions
  12. Each of the Partners has contributed to the capital of the Partnership, in services, cash or property in agreed upon value, as follows (the "Capital Contributions"):

    Partner

    Contribution Description

    Agreed Value

       

    __________

       

    __________


  13. All Partners will contribute their respective Capital Contributions fully and on time.
  14. Withdrawal of Capital
  15. No Partner will withdraw any portion of their Capital Contributions without the express written consent of the remaining Partners.
  16. Additional Capital
  17. Capital Contributions may be amended from time to time, according to the requirements of the Partnership provided that the interests of the Partners are not affected, except with the unanimous consent of the Partners. No Partner will be required to make Additional Capital Contributions. Whenever additional capital is determined to be required and an individual Partner is unwilling or unable to meet the additional contribution requirement within a reasonable period, as required by Partnership business obligations, remaining Partners may contribute in proportion to their existing Capital Contributions to resolve the amount in default. In such case the allocation of profits or losses among all the Partners will be adjusted to reflect the aggregate change in Capital Contributions by the Partners.
  18. Any advance of money to the Partnership by any Partner in excess of the amounts provided for in this Agreement or subsequently agreed to as Additional Capital Contributions will be deemed a debt owed by the Partnership and not an increase in Capital Contributions of the Partner. This liability will be repaid with interest at rates and times to be determined by a majority of the Partners within the limits of what is required or permitted in the Act. This liability will not entitle the lending Partner to any increased share of the Partnership's profits nor to a greater voting power. Such debts may have preference or priority over any other payments to Partners as may be determined by a majority of the Partners.
  19. Capital Accounts
  20. An individual capital account (the "Capital Account") will be maintained for each Partner and their Initial Capital Contributions will be credited to this account. Any Additional Capital Contributions made by any Partner will be credited to that Partner's individual Capital Account.
  21. Interest on Capital
  22. No borrowing charge or loan interest will be due or payable to any Partner on their agreed Capital Contributions inclusive of any agreed Additional Capital Contributions.
  23. Financial Decisions
  24. Decisions regarding the distribution of profits, allocation of losses, and the requirement for Additional Capital Contributions as well as all other financial matters will be decided by a unanimous vote of the Partners.
  25. Profit and Loss
  26. Subject to any other provisions of this Agreement, the net profits and losses of the Partnership, for both accounting and tax purposes, will accrue to and be borne by the Partners in equal proportions (the "Profit and Loss Distribution").
  27. Books of Account
  28. Accurate and complete books of account of the transactions of the Partnership will be kept in accordance with generally accepted accounting principles and at all reasonable times will be available and open to inspection and examination by any Partner. The books and records of the Partnership will reflect all the Partnership’s transactions and will be appropriate and adequate for the business conducted by the Partnership.
  29. Annual Report
  30. As soon as practicable after the close of each financial year, the Partnership will furnish to each Partner an annual report showing a full and complete account of the condition of the Partnership. This report will consist of at least the following documents:
    1. a statement of all information as will be necessary for the preparation of each Partner's income or other tax returns;
    2. a copy of the Partnership's income tax returns for that financial year; and
    3. any additional information that the Partners may require.
  31. Banking and Partnership Funds
  32. The funds of the Partnership will be placed in such investments and banking accounts as will be designated by the Partners. Partnership funds will be held in the name of the Partnership and will not be commingled with those of any other person or entity.
  33. Financial Year
  34. The financial year will end on the ______ day of ________________ of each year.
  35. Audit
  36. Any of the Partners will have the right to request an audit of the Partnership books. The cost of the audit will be borne by the Partnership. The audit will be performed by an accounting firm acceptable to all the Partners. Not more than one audit will be required by any or all of the Partners for any financial year.
  37. Management
  38. Except as all of the Partners may otherwise agree in writing, all actions and decisions respecting the management, operation and control of the Partnership and its business will be decided by a unanimous vote of the Partners.
  39. Contract Binding Authority
  40. Each Partner will have authority to bind the Partnership in contract.
  41. Meetings
  42. Regular meetings of the Partners will be held as required.
  43. Any Partner can call a special meeting to resolve issues that require a vote, as indicated by this Agreement, by providing all Partners with reasonable notice. In the case of a special vote, the meeting will be restricted to the specific purpose for which the meeting was held.
  44. All meetings will be held at a time and in a location that is reasonable, convenient and practical considering the situation of all Partners.
  45. Admitting a New Partner
  46. A new Partner may only be admitted to the Partnership with a unanimous vote of the existing Partners.
  47. Any new Partner agrees to be bound by all the covenants, terms, and conditions of this Agreement, inclusive of all current and future amendments. Further, a new Partner will execute such documents as are needed to effect the admission of the new Partner. Any new Partner will receive such business interest in the Partnership as determined by a unanimous decision of the other Partners.
  48. Voluntary Withdrawal of a Partner
  49. Any Partner will have the right to voluntarily withdraw from the Partnership at any time. Written notice of intention to withdraw must be served upon the remaining Partners at least three months prior to the withdrawal date.
  50. The voluntary withdrawal of a Partner will result in the dissolution of the Partnership.
  51. A Dissociated Partner will only exercise the right to withdraw in good faith and will act to minimise any present or future harm done to the remaining Partners as a result of the withdrawal.
  52. Involuntary Withdrawal of a Partner
  53. Events resulting in the involuntary withdrawal of a Partner from the Partnership will include but not be limited to: death of a Partner; Partner mental incapacity; Partner disability preventing reasonable participation in the Partnership; Partner incompetence; breach of fiduciary duties by a Partner; criminal conviction of a Partner; Expulsion of a Partner; Operation of Law against a Partner; or any act or omission of a Partner that can reasonably be expected to bring the business or societal reputation of the Partnership into disrepute.
  54. The involuntary withdrawal of a Partner will result in the dissolution of the Partnership.
  55. A trustee in bankruptcy or similar third party who may acquire that Dissociated Partner's interest in the Partnership will only acquire that Partner's economic rights and interests and will not acquire any other rights of that Partner or be admitted as a Partner of the Partnership or have the right to exercise any management or voting interests.
  56. Dissociation of a Partner
  57. Where the dissociation of a Partner for any reason results in the dissolution of the Partnership then the Partnership will proceed in a reasonable and timely manner to dissolve the Partnership, with all debts being paid first, prior to any distribution of the remaining funds. Valuation and distribution will be determined as described in the Valuation of Interest section of this Agreement.
  58. The remaining Partners retain the right to seek damages from a Dissociated Partner where the dissociation resulted from a malicious or criminal act by the Dissociated Partner or where the Dissociated Partner had breached their fiduciary duty to the Partnership or was in breach of this Agreement or had acted in a way that could reasonably be foreseen to bring harm or damage to the Partnership or to the reputation of the Partnership.
  59. Dissolution
  60. Except as otherwise provided in this Agreement, the Partnership may be dissolved only with the unanimous consent of all Partners.
  61. Distribution of Property on Dissolution of Partnership
  62. In the event of the dissolution of the Partnership, each Partner will share equally (the "Dissolution Distribution") in any remaining assets or liabilities of the Partnership.
  63. Upon Dissolution of the Partnership and liquidation of Partnership Property, and after payment of all selling costs and expenses, the liquidator will distribute the Partnership assets to the following groups according to the following order of priority:
    1. in satisfaction of liabilities to creditors except Partnership obligations to current Partners;
    2. in satisfaction of Partnership debt obligations to current Partners; and then
    3. to the Partners according to the Dissolution Distribution described above.
  64. The claims of each priority group will be satisfied in full before satisfying any claims of a lower priority group. Any excess of Partnership assets after liabilities or any insufficiency in Partnership assets in resolving liabilities under this section will be shared by the Partners according to the Dissolution Distribution described above.
  65. Valuation of Interest
  66. In the absence of a written agreement setting a value, the value of the Partnership will be based on the fair market value appraisal of all Partnership assets (less liabilities) determined in accordance with generally accepted accounting principles. This appraisal will be conducted by an independent accounting firm agreed to by all Partners. An appraiser will be appointed within a reasonable period of the date of withdrawal or dissolution. The results of the appraisal will be binding on all Partners. A withdrawing Partner's interest will be based on that Partner's proportion of the Dissolution Distribution described above, less any outstanding liabilities the withdrawing Partner may have to the Partnership.
  67. No allowance will be made for goodwill, trade name, patents or other intangible assets, except where those assets have been reflected on the Partnership books immediately prior to valuation.
  68. Goodwill
  69. The goodwill of the Partnership business will be assessed at an amount to be determined by appraisal using generally accepted accounting principles.
  70. Title to Partnership Property
  71. Title to all Partnership Property will remain in the name of the Partnership. No Partner or group of Partners will have any ownership interest in such Partnership Property in whole or in part.
  72. Voting
  73. Any vote required by the Partnership will be assessed where each Partner receives one vote carrying equal weight.
  74. Force Majeure
  75. A Partner will be free of liability to the Partnership where the Partner is prevented from executing their obligations under this Agreement in whole or in part due to force majeure, such as earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event where the Partner has communicated the circumstance of said event to any and all other Partners and taken any and all appropriate action to mitigate said event.
  76. Duty of Loyalty
  77. No Partner will engage in any business, venture or transaction, whether directly or indirectly, that might be competitive with the business of the Partnership or that would be in direct conflict of interest to the Partnership without the unanimous written consent of the remaining Partners. Any and all businesses, ventures or transactions with any appearance of conflict of interest must be fully disclosed to all other Partners. Failure to comply with any of the terms of this clause will be deemed an involuntary withdrawal of the offending Partner and may be treated accordingly by the remaining Partners.
  78. Duty of Accountability for Private Profits
  79. Each Partner must account to the Partnership for any benefit derived by that Partner without the consent of the other Partners from any transaction concerning the Partnership or any use by that Partner of the Partnership Property, name or business connection. This duty continues to apply to any transactions undertaken after the Partnership has been dissolved but before the affairs of the Partnership have been completely wound up by the surviving Partner or Partners or their agent or agents.
  80. Duty to Devote Time
  81. Each Partner will devote such time and attention to the business of the Partnership as the majority of the Partners will from time to time reasonably determine for the conduct of the Partnership business.
  82. Forbidden Acts
  83. No Partner may do any act in contravention of this Agreement.
  84. No Partner may permit, intentionally or unintentionally, the assignment of express, implied or apparent authority to a third party that is not a Partner in the Partnership.
  85. No Partner may do any act that would make it impossible to carry on the ordinary business of the Partnership.
  86. No Partner may individually consent to a judgment against the Partnership.
  87. No Partner will have the right or authority to bind or obligate the Partnership to any extent with regard to any matter outside the intended purpose of the Partnership.
  88. Any violation of the above forbidden acts will be deemed an involuntary withdrawal of the offending Partner and may be treated accordingly by the remaining Partners.
  89. Indemnification
  90. All Partners will be indemnified and held harmless by the Partnership from and against any and all claims of any nature, whatsoever, arising out of a Partner's participation in Partnership affairs. A Partner will not be entitled to indemnification under this section for liability arising out of gross negligence or wilful misconduct of the Partner or the breach by the Partner of any provisions of this Agreement.
  91. Liability
  92. A Partner will not be liable to the Partnership, or to any other Partner, for any mistake or error in judgment or for any act or omission done in good faith and believed to be within the scope of authority conferred or implied by this Agreement or the Partnership.
  93. Liability Insurance
  94. The Partnership may acquire insurance on behalf of any Partner, employee, agent or other person engaged in the business interest of the Partnership against any liability asserted against them or incurred by them while acting in good faith on behalf of the Partnership.
  95. Life Insurance
  96. The Partnership will have the right to acquire life insurance on the lives of any or all of the Partners, whenever it is deemed necessary by the Partnership. Each Partner will cooperate fully with the Partnership in obtaining any such policies of life insurance.
  97. Amendments
  98. This Agreement may not be amended in whole or in part without the unanimous written consent of all Partners.
  99. Governing Law and Jurisdiction
  100. This Agreement will be construed in accordance with and exclusively governed by the laws of Singapore.
  101. The Partners submit to the jurisdiction of the Courts of Singapore for the enforcement of this Agreement or any arbitration award or decision arising from this Agreement.
  102. Definitions
  103. For the purpose of this Agreement, the following terms are defined as follows:
    1. "Additional Capital Contributions" means Capital Contributions, other than Initial Capital Contributions, made by Partners to the Partnership.
    2. "Dissociated Partner" means any Partner who is removed from the Partnership through a voluntary or involuntary withdrawal as provided in this Agreement.
    3. "Expulsion of a Partner" can occur on application by the Partnership or another Partner, where it has been determined that the Partner:
      1. has engaged in wrongful conduct that adversely and materially affected the Partnership's business;
      2. has wilfully or persistently committed a material breach of this Agreement or of a duty owed to the Partnership or to the other Partners; or
      3. has engaged in conduct relating to the Partnership's business that makes it not reasonably practicable to carry on the business with the Partner.
    4. "Initial Capital Contributions" means Capital Contributions made by any Partner to acquire an interest in the Partnership.
    5. "Operation of Law" means rights or duties that are cast upon a party by the law, without any act or agreement on the part of the individual including, but not limited to, an assignment for the benefit of creditors, a divorce, or a bankruptcy.
    6. “Partnership Property” means all the property, real and personal, owned from time to time by the Partnership.
  104. Miscellaneous
  105. Time is of the essence in this Agreement.
  106. This Agreement may be executed in counterparts.
  107. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa. Words in the neuter gender include the masculine gender and the feminine gender and vice versa.
  108. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
  109. This Agreement contains the entire agreement between the parties. All negotiations and understandings have been included in this Agreement. Statements or representations which may have been made by any party to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value in this Agreement. Only the written terms of this Agreement will bind the parties.
  110. This Agreement and the terms and conditions contained in this Agreement apply to and are binding upon the Partner's successors, assigns, executors, administrators, beneficiaries, and representatives.
  111. Any notices or delivery required here will be deemed completed when hand-delivered, delivered by agent, or seven days after being placed in the post, postage prepaid, to the parties at the addresses contained in this Agreement or as the parties may later designate in writing.
  112. All of the rights, remedies and benefits provided by this Agreement will be cumulative and will not be exclusive of any other such rights, remedies and benefits allowed by law.

IN WITNESS WHEREOF the Partners have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.



_______________________________
WITNESS: ______________________

_______________________________
______________________(Partner)



_______________________________
WITNESS: ______________________

_______________________________
______________________(Partner)

Last updated June 21, 2022

What is a Partnership Agreement?

A Partnership Agreement is a written contract between two or more partners in a for-profit business. The agreement outlines the rights and duties of each partner.

A Partnership Agreement should address issues like:

  • Partner contributions
  • Profit and loss distribution
  • Admissions of new partners
  • Exiting partners
  • Dissolving the partnership
  • Accounting
  • Decision-making
  • Partnership meetings

LawDepot's Partnership Agreement template helps you manage your general partnership. Partners can be individuals, companies or limited partnerships. In order to establish a partnership, you must be at least 18 years old, a Singapore citizen, Singapore permanent resident or an eligible Foreign Identification Number (FIN) holder.

A Partnership Agreement is also known as a/an:

  • General Partnership Agreement
  • Partnership Contract
  • Articles of Partnership
  • Business Partnership Agreement

Why is it important to have a Partnership Agreement?

Having a Partnership Agreement is important because it helps reduce or avoid conflict between the partners. It sets the partnership's rules and can act as a guide for resolving disputes. The more specific and detailed the agreement is, the less room there is for confusion over roles, responsibilities or policies.

The Partnership Agreement also lets the partners decide their own specific arrangements. If a partnership doesn't have an agreement in place to address certain matters, those matters are then entirely governed by the Partnership Act 1890. Doing so might not always be what's best for your business.

For example, an agreement lets the partners specify how profits and losses are distributed amongst them. Without an agreement, the partners will share the profits and losses equally.

A Partnership Agreement helps to avoid conflict which may arise between the partners. Where the terms of a partnership are not clearly set out and recorded, disputes may arise over ownership division, the roles, and responsibilities of the partners, and the division of assets upon termination of the partnership.

Can I draft my own Partnership Agreement?

Yes, you are allowed to draft your own Partnership Agreement. By going through LawDepot's questionnaire, you can ensure you have a legally sound draft agreement covering all your partnership's most important details.

How do I register a partnership?

Partnerships in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA). To register your partnership, you need to submit your online application to BizFile

All the partners need to consent to the registration before it can go through. Partners also need to ensure they have enough funds in their Medisave account to register the partnership.

How do you end a partnership?

Your Partnership Agreement will give you and your partners multiple options for ending the partnership:

  • Picking a specific date that it will end (fixed-term)
  • A partner withdrawls from the partnership
  • Through a unanimous or majority vote

Unless your Partnership Agreement specifies otherwise, the Partnership Act 1890 also states that a partnership will dissolve if:

  • Any partner dies or becomes incapable of performing their duties
  • Any partner files for bankruptcy
  • An event occurs which makes the business of the firm unlawful

How do I write a Partnership Agreement?

You can easily create a Partnership Agreement for a business in Singapore by filling out LawDepot's questionnaire. Using our template will ensure you complete the necessary steps.

Step 1. Provide basic details about the partnership

Start your Partnership Agreement by providing basic details about your business, such as:

  • The business name
  • Partnership start date
  • Purpose (e.g., automobile restoration, retail, food, and accommodations)
  • Street address, town, and postal code

You need to register your business name with the Singapore Accounting and Corporate Regulatory Authority (ACRA). The name you choose can’t be identical to any other reserved or registered business name or undesirable in the Registrar’s opinion.

Step 2: Specify how long the partnership will last

Your partnership can continue indefinitely or have a fixed term and end on a specific date.

Most partnerships last until the partners decide to end it or an intervening event causes them to dissolve it. However, your circumstances might allow you to know when your partnership will end. In that case, choose a fixed term.

Step 3: Include details about the partners

The Partnership Agreement needs to include each partner’s name, address, and capital contributions. Also, specify whether the partner is an individual, company, or limited liability partnership.

Singapore allows a maximum of 20 partners unless it’s a professional partnership that practices a regulated profession. In that case, there’s no limit on the number of partners.

Examples of regulated professions include:

A partner’s capital contributions are the amount of cash, resources, or services they bring to the partnership. Provide an accurate description, including quantities and amounts.

Step 4: Outline how profits and losses are distributed

Decide if profits and losses will be distributed among the partners equally, in proportion to their capital contributions, or based on a fixed percentage for each partner.

If you choose a fixed percentage, the partners’ total portions need to equal 100%.

Step 5: State whether additional partners are permitted in the future

If your partnership will allow the addition of new partners, state if their admittance requires a majority or unanimous vote from the partners. Under the Partnership Act, a unanimous vote is required.

Step 6: Outline how a partner can voluntarily withdraw from the partnership

The withdrawal of a partner can have severe consequences for a partnership, especially when it's unexpected. That's why the exiting partner needs to submit a notice of withdrawal to do so.

Your Partnership Agreement should specify how much notice is required (e.g., three months, six months, one year, or two years) to withdraw. Your agreement can also include a non-compete clause that prevents the withdrawing partner from working for your business competitors.

Under the Partnership Act, a partnership automatically dissolves when a partner exits. However, you can state in your agreement that the partnership will continue doing business together if at least two partners remain.

Step 7: Specify what happens when the partnership dissolves

A Partnership Agreement should have guidelines for dissolving the partnership. Beyond setting an end date or dissolving when a partner leaves, the partners can also take the matter to a vote.

Your agreement should state whether a majority or unanimous partner vote is required to dissolve the partnership.

When a partnership dissolves, its affairs must be wound up, assets liquidated, debts paid, and the surplus divided among the partners.

It should also specify if the partners will distribute the company’s assets:

  • Equally amongst them
  • In proportion to each of their capital contributions
  • Based on a fixed percentage

Step 8: Outline accounting details

Your Partnership Agreement needs to specify accounting details like:

  • The date the financial year ends
  • Whether partners receive remuneration (in addition to their share in the profits) for the work they’ve done
  • Which financial reports you want annually

In addition to an income tax report, many partnerships also like to have a:

  • Supporting income statement
  • Balance sheet
  • Cash flow statement
  • Profit and loss summary

Step 9: Determine who will manage the partnership

Determine whether all the partners or a managing partner will be responsible for the partnership’s overall management and day-to-day operations. 

If you have a managing partner, specify which partner is in the role and whether a majority or unanimous partner vote is required to remove them.

Step 10: Specify how the partnership will make important decisions

Outside of the day-to-day decisions that a managing partner is trusted to make, the partners will put the most important decisions to a vote.

Specify in your agreement whether financial and business decisions will be determined with a majority or unanimous vote. Remember that a unanimous vote gives each partner veto power.

For decisions regarding the partnership, also state whether the votes will be based on the proportion of capital contributions, in proportion to profit share, or if each partner will receive an equal vote.

Step 11: Determine who has the authority to sign contracts

Each partner typically has the authority to enter into a contract on the partnership's behalf as long as it's reasonable, given its usual business activities.

However, you can also put each contract to a vote or have the managing partner be the only partner with signing authority.

Step 12: State how often the partners will hold partnership meetings

State if the partners will hold partnership meetings weekly, monthly, quarterly, annually, or as required. 

You’ll also need to determine if any partner can call a special meeting or if it requires a majority of the partners.

Requiring unanimous consent gives each partner the power to veto a decision. There might be some decisions that come with more risk for one partner than it does the others for a variety of reasons, and that’s when requiring unanimous consent is appropriate. 

Some decisions that your partnership might want to require unanimous consent for include:

  • Signing partnership cheques
  • Assuming new debts over a certain amount
  • Assuming new expenses over a certain amount
  • Selling partnership assets over a certain value
  • Hiring highly paid employees
  • Firing employees
  • Making decisions affecting the unusual use or lending of partnership equipment
  • Releasing partnership claims except for payment in full (i.e., a waiver or release of any significant debt owed to your partnership)

Step 14: Include any additional clauses

You can write additional clauses into your Partnership Agreement if there are any unique topics or issues that it doesn’t already address.

Step 15: Sign the agreement

Finish your agreement by dating and signing it. Space is provided at the bottom of the agreement for each partner’s signature. 

Partnership Agreements don't legally require witnesses, but it can be good to include them to reduce the chances of its execution being challenged.

Related Documents

  • Confidentiality Agreement: Prevent receiving parties from sharing or using sensitive information.
  • Employment Contract: Outline the terms of a working relationship between an employee and employer, including their rights and responsibilities.
  • Non-Disclosure Agreement: Define the confidential information you are sharing with someone and outline how they can use it.
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