Whenever in a partnership business all the partners have limited liability, it is known as a limited liability partnership. The limited liability partnership contract states that one partner is not responsible for the negligence of another partner.
Sample Limited Liability Partnership Contract:
This contract is made on the 21st November, 2010 between George Bush and Saddam Hussein who want to enter into a Limited Liability Partnership Act as per the Partnership Act of the state laws of New Jersey. The name of the Limited Liability Partnership will be Peace Manufacturing Ltd. with the head office located at 2135 Marine drive, Santiago, New Jersey 5421. The partnership will commence from 25th November, 2010 and continue till it is terminated by either of the parties.
The following terms and conditions put down in the contract needs to be followed by both the parties:
- The capital brought in by both the partners should be in cash. Both the partners will be liable towards the total capital amount brought in by each of them.
- The liability of the partners will also be restricted to the amount of expenses borne by each of them.
- If either of the partners fails to bring in the amount of capital promised, the partnership will be forfeited.
- The profit and losses will also be shared on the basis of the percentage of the liability the partner is liable to.
Thus, in agreement to the above terms and conditions the partners have put their signature below:
George Bush Saddam Hussein
Dated: 21st November, 2010 Dated: 21st November, 2010