When two or more individuals or organizations start a business together a partnership contract is drafted. The contract states the name of the parties entering into partnership , the amount each needs to bring into the business and all the other terms and conditions.
Sample Partnership Contract:
The partnership contract represents the agreement between the two organizations Dutchinson Telecom and Bare Tell Corporation to provide telecom service under the brand name Idea Limited with its headquarter located at 8956 Nepean Road, Offshore City, New jersey 7841. The contract has been drafted as per the Partnership Act of the state of New Jersey.
The business will be carried out under the following terms and conditions:
- The earnings will be divided on percentage basis with Dutchinson Telecom receiving 70% and Bare Tell Corporation receiving 30%.
- The capital to set up the infrastructure and the purchasing the premise will be borne by Dutchinson Telecom where as the advertising and promotional expenses will be borne by Bare Tell Corporation.
- The partnership can be terminated at any point of the business prior to which there needs to be a notice of one month provided by either of the partners. In case of such termination the assets and liabilities of the company will be shared among the partners on the basis of earnings percentage.
- The business can also be dissolved if any act of fraud is committed by either of the partners.
Thus in regards to the acceptance to the terms and conditions, both the partners affix their signature below:
Jack Trader Neil Robber
(CEO, Dutchinson Telecom) (CEO, Bare Tell Corporation)
Dated: 22nd November,2010 Dated: 22nd November,2010