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Small Business Partnership Agreement
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Prepared for:
[First Partner]

Prepared by:
[Second Partner]
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Small Business Partnership Agreement

This Partnership Agreement (hereinafter referred to as the "Agreement") is made and entered into on [Effective Date] (hereinafter referred to as the “Effective Date”),

By and Between

[First Partner’s Name] (hereinafter referred to as "Partner 1"), with its principal place of business at [Address] and;

[Second Partner’s Name] (hereinafter referred to as "Partner 2"), with its principal place of business at [Address].

Partner 1 and Partner 2 are collectively referred to as "Partners" and individually as "Partner".

WHEREAS the Partners wish to associate themselves as partners in the [type of business] business.

IN CONSIDERATION THEREOF, Partners entering into this Agreement hereby agree to the following terms and conditions.

Terms and Conditions

1. Functions

  1. Formation
  1. The Partners enter into a general Partnership Agreement under the laws of [State].
  1. The rights and obligations of the Partners shall be stated in applicable legislation of [State/Region] except as otherwise provided in this Agreement.
  1. Name of the Partnership: The Name of the Partnership shall be [Name of Partnership], (hereinafter referred to as the “Partnership”).
  1. Nature of the Partnership: The Partners are independent entities wherein they are not allowed to assume or create any obligation on the other Partner’s behalf.
  1. Purpose: The purpose of the Partnership shall be the following [Purpose of Partnership].
  1. Term: The Partnership shall begin as on [Commencement Date] and shall continue unless otherwise terminated pursuant to the full terms of this Agreement.
  1. Place of Business: The principal business of the Partnership shall be located at [Address] or such other place as the Partners may designate from time to time designate.

2. Capital Contribution

Each of the Partners shall contribute to the capital of the Partnership as shown in the table (hereinafter referred to as the "Capital Contribution").

A separate capital account (hereinafter referred to as the "Capital Account") shall be maintained for each Partner and their Initial Capital Contribution shall be credited to this account. Any Additional Capital Contributions made by any Partner shall be credited to that Partner's Capital Account.

Neither of the Partners shall withdraw any part of their Capital Contribution without the written consent of the remaining Partners.
Partners
Amount
Partner 1
$[0.00]
Partner 2
$[0.00]

3. Profit and Loss

The net profits of the Partnership shall be divided equally between the Partners and the losses shall be equally divided between the Partners. A separate income shall be provided for maintaining the profits of the account as agreed upon by the Partners.

4. Accounting

The books of accounts for the Partnership shall be documented and kept at the Partnership’s principal location. These financial records shall be maintained on a fiscal year basis, with the Partnership’s fiscal year beginning as of the month of this small business partnership agreement. Every Partner is required to report all transactions related to the Partnership business accurately and timely.

5. Management

Except as all of the Partners agree in writing, all affairs and decisions respecting the management, operation and control of the Partnership, and its business will be decided by the mutual consensus of the Partners.
Upon mutual consensus of the Partners, every Partner shall have the right to manage all the affairs of Partnership in the ordinary course of business.

6. Termination

Each partner retains the right to revoke this Agreement upon [number of days] written notice to the other partner.

This Agreement shall also be terminated upon death, bankruptcy, or incompetency of any Partner. 

In the event that one or both Partners wish to cancel this Agreement, all of the Partnership’s assets shall be promptly liquidated. After resolving any debts, each partner shall receive their share of the Partnership’s final net profits in accordance with their respective shares in the Partnership.

Upon termination of this agreement, the Partner(s) shall cease reproducing, advertising, marketing, and distributing any material information pertaining to this Partnership immediately.

7. Dissolution

  1. Except as otherwise provided in this Agreement the Partnership shall be dissolved only with the majority votes of the Partners.
  1. During the dissolution, every Partner shall share the remaining assets or liabilities equally.

8. Confidentiality

  1. Any information, material facts, trade secrets obtained during this Agreement shall remain confidential to the parties herein the Agreement.
  1. Neither Partner shall disclose any confidential information to any third party.



9. Indemnification

All Partners shall 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 the Partnership affairs.

10. Liability

A Partner shall be not liable to the Partnership or to the other Partner, for any mistake or error in judgment or for any act done in good faith and believed to be within the scope of authority conferred or implied by this Agreement or the Partnership.

11. Arbitration

In the event of any dispute arising in and out of this Agreement between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and the seat shall be [State]. The Arbitrators' decision shall be final and will be binding on both the Parties.

12. Miscellaneous

  1. Assignability: Neither partner may assign this Agreement or the rights and obligations thereunder to any third party without the prior express written approval of the other partner which shall not be unreasonably withheld.
  1. Notices: Any notice required to be given under this Agreement shall be in writing and shall be delivered by certified mail, personal delivery, or overnight delivery.
  1. Force Majeure: Neither Partner shall be liable for any failure in performance of the obligations under this Agreement due to causes beyond that partner’s reasonable control (including and not limited to a pandemic, fire, strike, act or order of public authority, and other acts of God), provided that it is duly communicated and appropriate action has been taken to mitigate such event.
  1. Modification: No modification of this Agreement shall be made unless in writing, signed by both parties.
  1. Severability: If any term, clause, or provision hereof is held invalid or unenforceable by a court of competent jurisdiction, all other terms will remain in full force and effect until the Agreement termination.
  1. Governing Law: This Agreement hereto shall be governed and interpreted following the laws of [State/Court/Region]. Both Partners hereby agree that any dispute arising related to this Agreement shall be subject to the exclusive jurisdiction of the competent courts.
  1. Entire Agreement: This is the entire Agreement regarding the terms and conditions of the company’s engagement. It supersedes all agreements entered into by the Partners.

Acceptance and Signature  

IN WITNESS THEREOF, the Partners hereto have executed this Agreement as on the day and year mentioned above.
[First Partner]

[Second Partner]
Signature
Assign signer 1
Name
Assign signer 1
Date
Assign signer 1
Signature
Assign signer 2
Name
Assign signer 2
Date
Assign signer 2
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THANK YOU

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DISCLAIMER: The content provided herein is for general information purposes only, and shall not constitute legal advice. Revv and its partners make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information mentioned hereunder. The use or reliance of any information contained herein is solely at your own risk. You are advised to obtain independent legal advice before taking or refraining from any action on the basis of the content provided here.

Free Small Business Partnership Agreement Templates

Are you a small business owner who needs business partnership agreement template that is legally sound? Do check out this template where you can edit on-the-go, directly attach table from google sheets and eSign.