Partnership Agreement

Partnership agreement is a written or oral mutual consent to run a business as co-owner for profit. Partnership agreement is also known as article of partnership.


Content of the agreement / the common provision of a partnership contract.

1. The Name of the Firm
2. The Place of the business
3. Nature of Business
4. The names and addresses of partners
5. The amount of investment by each partner
6. The length of life of the partnership
7. The Profit sharing ratio of the partners
8. Extent of withdrawals by each partner
9. Procedure of admission of new partner
10. A provision of salaries of partners
11. A provision of dissolution of the firm
12. Determination of an accounting system and a fiscal year
13. Right duties, and liabilities of partners
14. The name of the banker
15. The signing authority of the check
16. A provision of the retirement of a partner
17. Determination of goodwill
18. A provision of bonus to partners
19. A provision of the method of settlement of dispute
20. A provision for minor partners
21. Interest on capital
22. Interest on Loan
23. Loan from partners
24. Loan to partners.