Are you planning to start a business with a partner/ partners and would you like to share some legal benefits? That’s great! But, beware of the unintended disputes. Choose from the eight Partnership Contract Templates below. An agreement template, also known as General Partnership Agreement, Partnership Contract, or Articles of Partnership, is a written contract between one or more partners. It states the responsibilities, profit/loss distribution and all the rules regarding the partnership.
Business Partnership Contract is an agreement between partners planning to start a business. This agreement breaks down each partner’s responsibilities, contributions, profit and loss percentage, management duties, powers, etc. This written legal document saves the partners from some serious unforeseen conflicts and situations that might turn into unresolved misunderstandings and destructive enmity.
Domestic Partnership Contract like a marriage contract can be applied to any unmarried couples who are living together. Partners on serious relationship declare at the court or at the respective government office. Domestic partners enjoy some of the legal benefits of marriage like coverage on family health insurance, family leave in case of a sick partner and Bereavement leave, rights of visitation in hospitals or jails.
Limited Partnership Contract has at least one partner with unlimited liability in the business and a limited partner who is only liable for their part of ownership. Contradictorily, Limited Liability Partnership has all the partners liable only for their own actions. The Limited Partnership also called as LP, has the partners liable only to the extent of their investments in the business.
General Partnership Contract is a type of business agreement in which one or more partners join to form a business for profit where each and every partner is equally liable for any debt, action or obligation. This kind of arrangement implicitly makes every partner’s personal assets liable to the business.
Real Estate Partnership Contract is an agreement in the form of Limited Partnership arranged to invest in Real Estate. There is an assigned Property Manager (Real-estate Development Firm) who serves as a General Partner. Investors from outside provide finance and become Limited Partners of the business.
A Business Partnership Contract is a very crucial paper that determines various important aspects of a partnership. It draws boundaries between business relationships in words, thus making the pact un-risky. It may include all or a few of these clauses;
A Contract Template not only allows you to define your relationships with your partners but also clearly records the valuable facts like contributions, profit/loss shares, responsibilities and other legal agreements.You and your partners can rest assured that there is some kind of legal agreement as a proof in the event of any small or big disagreement/ dispute.
In a situation or crisis, you have the agreed solutions handy. So, you and your partners can concentrate on planning strategies rather than arguing about responsibilities.A Partnership Contract Template not only clarifies the roles but also helps in reduction of money related issues.The contract also outlines entry and exit plans for the partners.
Regardless of the type of partnership, the Partnership Agreement is an essential component.
As the contract covers both good and bad times, it will serve as a solution-library in future. It is a smart move to have the elaborate written record, should any confusion or complication arise. This could save you time and the stress/ hassle created by any dispute that might hinder your business. Plan, Document and stay Relaxed.