Business Partnership Agreement Template
BUSINESS PARTNERSHIP AGREEMENT
This Business Partnership Agreement (hereinafter referred to as this "Agreement") is made and entered into on this [Day] day of [Month], [Year] (the "Effective Date"), by and between:
[Partner One Full Legal Name], an individual of legal age and full capacity, residing at [Full Residential Address] (hereinafter referred to as "Partner One"); and
[Partner Two Full Legal Name], an individual of legal age and full capacity, residing at [Full Residential Address] (hereinafter referred to as "Partner Two").
Partner One and Partner Two are hereinafter referred to individually as a "Partner" and collectively as the "Partners".
WHEREAS, the Partners desire to associate themselves as partners for the purpose of carrying on a business for profit in common;
WHEREAS, the Partners act in their personal capacity as private individuals and not in any corporate, trust, or representative capacity whatsoever;
WHEREAS, the Partners have agreed to establish a general partnership upon the terms, covenants, and conditions hereinafter set forth, and to reduce their mutual understanding to writing in the form of this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and undertakings herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Partners, intending to be legally bound, do hereby covenant and agree as follows.
Definitions and Interpretation
In this Agreement, unless the context otherwise expressly requires, the following words and expressions shall bear the meanings respectively ascribed to them hereunder.
"Partnership" shall mean the general partnership constituted and formed pursuant to the terms of this Agreement, comprising the Partners as its sole and exclusive members, and operating under the name set forth in the section hereof concerning formation.
"Capital Account" shall mean, with respect to each Partner, the account maintained in the books of the Partnership reflecting such Partner's initial and additional capital contributions, increased by such Partner's share of profits and additional contributions, and decreased by such Partner's share of losses, drawings, and distributions, as more particularly described herein.
"Partnership Property" shall mean all assets, whether tangible or intangible, real or personal, movable or immovable, contributed to, acquired by, or held in the name of the Partnership, together with all rights, titles, interests, and benefits arising therefrom or appertaining thereto.
"Fair Value" shall mean, with respect to the interest of a Partner, the price that would be payable between a willing buyer and a willing seller, neither being under any compulsion to buy or sell, each having reasonable knowledge of all relevant facts, and determined in accordance with the valuation procedure prescribed in the section concerning withdrawal and buyout.
"Business Day" shall mean any day other than a Saturday, Sunday, or public holiday observed in [Country/Jurisdiction], on which banking institutions are generally open for the transaction of normal business.
"Confidential Information" shall mean any and all non-public information, data, documents, know-how, trade secrets, customer lists, financial records, business methods, and proprietary materials relating to the Partnership or either Partner, whether communicated orally, in writing, electronically, or in any other medium.
The headings and sub-headings used in this Agreement are inserted for convenience of reference only and shall not affect the construction, meaning, or interpretation of any provision hereof. Words importing the singular shall include the plural and vice versa, and words importing any one gender shall include each other gender.
Any reference herein to a section, clause, or sub-clause shall, unless otherwise stated, be construed as a reference to a section, clause, or sub-clause of this Agreement. Reference to any statute, regulation, or legal instrument shall be deemed to include any amendment, modification, re-enactment, or replacement thereof as may be in force from time to time.
Formation and Name of the Partnership
The Partners hereby formally constitute, form, and establish a general partnership (the "Partnership") upon and subject to the terms, covenants, and conditions set forth in this Agreement, with effect from the Effective Date.
The name under which the Partnership shall carry on its business shall be "[Partnership Name]" or such other name as the Partners may from time to time unanimously agree in writing to adopt.
The principal place of business of the Partnership shall be located at [Full Business Address], or at such other address as the Partners may from time to time by unanimous written agreement designate.
The Partnership may, upon the unanimous consent of the Partners, establish and maintain such additional offices, branches, or places of business, whether within or outside the jurisdiction of its principal place of business, as the conduct of its affairs may reasonably require.
The Partners shall promptly cause the Partnership to be registered or filed with such governmental or administrative authorities as may be required by the laws of [Country/Jurisdiction], and shall duly obtain all such licenses, permits, and approvals as may be necessary or expedient for the lawful conduct of the Partnership's business.
The Partners each represent and warrant that they are acting as private individuals, that they have full legal capacity to enter into this Agreement, and that neither is subject to any contractual, fiduciary, or other obligation which would preclude or impair their entry into this Agreement.
The Partnership shall operate under a common firm name, and all contracts, instruments, invoices, and correspondence undertaken on behalf of the Partnership shall, so far as practicable, be executed and issued in the name of the Partnership.
Partnership Property
All property, whether real, personal, tangible, or intangible, contributed to the Partnership by either Partner or acquired by or in the name of the Partnership out of Partnership funds, shall constitute Partnership Property and shall be held by the Partners jointly for the exclusive use and benefit of the Partnership.
No Partner shall have any individual proprietary interest in any specific item of Partnership Property, but shall have only an undivided beneficial interest in the Partnership as a whole, measured in accordance with such Partner's Capital Account and participation ratio.
Title to all Partnership Property shall, wherever lawful and practicable, be taken and held in the name of the Partnership; where it is not lawful or practicable to do so, title may be taken in the names of the Partners jointly, in trust for the Partnership, subject to a written declaration of trust in favor of the Partnership.
Each Partner hereby irrevocably waives, to the maximum extent permitted by applicable law, any right which such Partner might otherwise have to seek partition or division in kind of any Partnership Property during the subsistence of the Partnership.
All income, profits, proceeds, and increments arising from the use, exploitation, lease, sale, or other disposition of Partnership Property shall accrue to and vest in the Partnership, and shall be dealt with in accordance with the provisions of this Agreement concerning allocation and distribution.
No Partner shall, without the prior unanimous written consent of the other Partner, mortgage, pledge, hypothecate, encumber, sell, assign, transfer, lease, or otherwise dispose of any Partnership Property or any interest therein.
The Partners shall cause to be maintained a complete and accurate inventory and register of all Partnership Property, which register shall be updated promptly upon any acquisition, disposition, or material change in respect of any Partnership Property.
Purpose and Scope of Business
The purpose of the Partnership shall be to engage in and carry on the business of [Description of Business, including principal activities, products, and/or services] (the "Business"), together with all such ancillary, incidental, or related activities as may reasonably be necessary or expedient for the furtherance of the said Business.
The Partnership shall have the power and authority to do and perform all acts and things which may be necessary, convenient, or incidental to the accomplishment of its purposes, including, without limitation, the acquisition, holding, and disposition of property, the entering into of contracts, the borrowing and lending of monies, and the employment of personnel.
The scope of the Business may be extended, modified, restricted, or otherwise altered only by the unanimous written agreement of the Partners, and no Partner shall unilaterally commit the Partnership to any business or activity falling outside the scope of the Business as defined herein.
The Partners shall devote such of their time, attention, and skill to the conduct of the Business as may reasonably be required for the proper and efficient discharge of their respective duties and the furtherance of the Partnership's interests.
The Partnership shall at all times be conducted in a lawful, ethical, and businesslike manner, in strict compliance with all applicable laws, regulations, codes, and standards of the jurisdiction or jurisdictions in which the Business is carried on.
The Partners acknowledge that the Partnership is formed for the pursuit of profit for the mutual benefit of the Partners, and that each Partner shall act in good faith and with reasonable diligence in the promotion and protection of the Partnership's interests.
Term and Commencement
The Partnership shall be deemed to have commenced on the Effective Date and shall continue in existence for an indefinite term, until such time as it is dissolved and wound up in accordance with the provisions of this Agreement or by operation of law.
The Partnership shall not be dissolved merely by reason of the lapse of time, the completion of any particular transaction or venture, or the attainment of any specific commercial objective, save as expressly provided for herein.
Notwithstanding the perpetual duration contemplated hereby, the Partners may at any time by unanimous written agreement elect to dissolve the Partnership, in which event the provisions concerning dissolution and winding up shall apply.
The occurrence of any of the following events shall not of itself result in the automatic termination of the Partnership, but shall be dealt with in accordance with the provisions of this Agreement concerning withdrawal, buyout, admission of new partners, or dissolution, as the case may be: the death, incapacity, insolvency, bankruptcy, or withdrawal of a Partner.
The Partners shall from time to time review the ongoing viability and continuation of the Partnership, and shall endeavor in good faith to resolve any matters that might otherwise jeopardize its continuity.
The commencement date and the duration of the Partnership shall be recorded in the books of the Partnership and in any register or filing required by applicable law.
Capital Contributions
Upon the execution of this Agreement, each Partner shall contribute to the capital of the Partnership the sum of [Amount] in [Currency], or property of equivalent value, as set forth opposite such Partner's name below: Partner One: [Amount in Currency or description of property]; Partner Two: [Amount in Currency or description of property].
The initial capital contributions shall be made in full and in cleared funds (or by delivery of the agreed property, duly transferred to the Partnership) no later than [Number] Business Days following the Effective Date.
A separate Capital Account shall be established and maintained for each Partner in the books of the Partnership, and shall be credited and debited in accordance with the provisions of this Agreement and generally accepted accounting principles.
No Partner shall be required or obligated to make any additional capital contribution beyond the initial contribution set forth above, except upon the unanimous written agreement of the Partners. Any such additional contribution, if agreed, shall be made by the Partners in equal shares unless otherwise unanimously agreed in writing.
No interest shall accrue or be payable on any capital contribution or on any balance standing to the credit of a Partner's Capital Account, unless otherwise unanimously agreed in writing by the Partners.
No Partner shall be entitled to withdraw, reduce, or demand repayment of any part of their capital contribution during the subsistence of the Partnership, save in accordance with the express provisions of this Agreement.
If any Partner shall advance to the Partnership any sum beyond the capital contribution agreed to be subscribed, such advance shall be treated as a loan to the Partnership bearing interest at such rate and on such terms as the Partners may unanimously agree in writing.
In the event that additional capital is required for the proper conduct of the Business and the Partners are unable to reach unanimous agreement upon the terms of such additional contribution, the Partners shall engage in good-faith discussions to resolve the matter, failing which the dispute resolution procedures herein shall apply.
Allocation of Profits and Losses
The net profits of the Partnership arising from the conduct of the Business during each fiscal year shall be allocated and divided between the Partners in equal shares, that is to say, fifty per centum (50%) to Partner One and fifty per centum (50%) to Partner Two.
The net losses of the Partnership arising from the conduct of the Business during each fiscal year shall likewise be borne by the Partners in equal shares, that is to say, fifty per centum (50%) to Partner One and fifty per centum (50%) to Partner Two.
For the purposes of this Agreement, "net profits" and "net losses" shall mean the profits or losses of the Partnership as determined in accordance with generally accepted accounting principles consistently applied, after taking into account all expenses, deductions, allowances, provisions, and reserves properly chargeable against the gross income of the Partnership.
The fiscal year of the Partnership shall commence on [Start Date] and end on [End Date] of each calendar year, or such other period as the Partners may unanimously agree in writing to adopt.
Profits and losses shall be determined and allocated as of the end of each fiscal year, and the resulting allocations shall be credited or debited to the respective Capital Accounts of the Partners within [Number] days following the finalization of the annual accounts.
The Partners may, by unanimous written agreement, set aside such sums out of the profits of any fiscal year as they consider prudent for the establishment of reserves for working capital, contingencies, replacement of assets, or any other proper purpose of the Partnership, prior to allocation of the remainder.
Any extraordinary gains or losses, including those arising from the sale of capital assets or from events outside the ordinary course of business, shall be allocated between the Partners in the same equal proportions as ordinary profits and losses, unless the Partners unanimously agree otherwise in writing.
Drawings and Distributions
Subject to the provisions of this Agreement, each Partner shall be entitled to make periodic drawings from the Partnership against their anticipated share of profits, in such amounts and at such intervals as may be unanimously agreed in writing by the Partners.
The aggregate drawings made by each Partner during any fiscal year shall not exceed the lesser of such Partner's share of the estimated net profits for that fiscal year or such other limit as the Partners may unanimously establish from time to time.
Should the drawings of a Partner in any fiscal year exceed such Partner's actual share of net profits for that fiscal year, the excess shall be repaid to the Partnership by the Partner concerned within [Number] days following the finalization of the annual accounts, or shall be set off against future distributions as the Partners may unanimously agree.
All drawings shall be duly recorded in the Partner's Capital Account and shall be reconciled against the final allocation of profits at the end of each fiscal year.
After the finalization of the annual accounts and the allocation of profits in accordance with the preceding section, the remaining undistributed profits (after any reserves) shall be distributed to the Partners in equal shares, within [Number] days of such finalization, unless the Partners unanimously agree to retain such profits within the Partnership.
No distribution shall be made which would render the Partnership unable to meet its liabilities as they fall due in the ordinary course of business, or which would reduce the Partnership's net assets below the aggregate amount of its outstanding liabilities.
In-kind distributions of Partnership Property shall not be made save with the unanimous written consent of the Partners, and any such distribution shall be valued at Fair Value for the purposes of adjustment to the Capital Accounts.
Management and Decision-Making
The management, control, and conduct of the Business and affairs of the Partnership shall be vested jointly in the Partners, each of whom shall have equal rights and authority in such management, subject always to the provisions of this Agreement.
Save in respect of matters arising in the ordinary and usual course of the day-to-day business of the Partnership, all decisions concerning the Business, affairs, and property of the Partnership shall require the unanimous consent of the Partners.
Without limiting the generality of the foregoing, the following matters shall in all cases require the prior unanimous written consent of the Partners: the incurring of any capital expenditure or liability exceeding [Amount] in [Currency]; the borrowing of monies or the giving of any guarantee or indemnity; the acquisition or disposition of any material asset of the Partnership; the entry into any contract of unusual nature or duration; the employment or dismissal of any senior personnel; the commencement, settlement, or compromise of any litigation or arbitration; the admission of any new partner; the amendment of this Agreement; and the dissolution of the Partnership.
The Partners shall hold regular meetings for the discussion of the Partnership's affairs at such intervals and at such times and places as they may from time to time agree, and in any event not less frequently than [Frequency]. Meetings may be held in person or by any means of audio or audio-visual communication by which all participants can simultaneously hear and be heard by one another.
Any Partner may convene a meeting of the Partners by giving to the other Partner not less than [Number] Business Days' prior written notice specifying the matters to be considered, provided that such notice may be waived by unanimous written consent of the Partners.
In the event of a deadlock between the Partners upon any matter requiring unanimous consent, the Partners shall first endeavor in good faith to resolve such deadlock through direct and candid discussion. Failing resolution within [Number] Business Days, the matter shall be referred to the dispute resolution procedure set forth in this Agreement.
Each Partner shall have authority to bind the Partnership in respect of acts and transactions arising in the ordinary course of the Business, provided that no Partner shall exceed the limits of authority established hereunder or by subsequent unanimous agreement of the Partners.
Resolutions of the Partners may be adopted at a duly convened meeting or by written instrument signed by both Partners, and in each case shall be recorded in the minute book of the Partnership.
Books, Records and Financial Statements
The Partners shall cause to be kept at the principal place of business of the Partnership full, true, and accurate books of account and records of all transactions, dealings, receipts, disbursements, assets, liabilities, income, and expenditures of the Partnership.
The books and records of the Partnership shall be maintained in accordance with generally accepted accounting principles consistently applied, and shall be kept on an accrual basis unless the Partners unanimously agree otherwise in writing.
Each Partner shall at all reasonable times have full and unrestricted access to all books, records, documents, accounts, and vouchers of the Partnership, and may take copies thereof or extracts therefrom at the Partnership's expense.
As soon as reasonably practicable after the close of each fiscal year, and in any event not later than [Number] days thereafter, the Partners shall cause to be prepared annual financial statements of the Partnership, comprising a statement of financial position, a statement of profit and loss, and such other statements as may be required by applicable law or as the Partners may unanimously determine.
The Partners may, by unanimous written agreement, appoint an independent accountant or firm of accountants to review, audit, or compile the financial statements of the Partnership, and the reasonable fees and expenses of such accountant shall be borne by the Partnership.
The annual financial statements shall be submitted to the Partners for their review and approval, and upon such approval shall be signed by both Partners as evidence of their acceptance thereof.
The Partnership shall maintain a bank account or accounts in its name at such banking institution or institutions as the Partners may unanimously agree, and all monies belonging to the Partnership shall be deposited therein. Withdrawals from such accounts shall be made in accordance with such signatory requirements as the Partners may unanimously establish.
The Partners shall jointly be responsible for ensuring the timely preparation, filing, and payment of all tax returns and taxes required to be filed or paid by the Partnership under applicable law.
Duties and Obligations of the Partners
Each Partner shall at all times observe and perform the duties of utmost good faith, loyalty, fidelity, and fair dealing toward the Partnership and the other Partner, and shall act honestly, diligently, and in the best interests of the Partnership.
Each Partner shall devote such time, attention, skill, and effort to the Business of the Partnership as may reasonably be required for the due and proper discharge of such Partner's duties and the advancement of the Partnership's interests.
Each Partner shall promptly render to the other Partner true and complete accounts of all matters affecting the Partnership and of any benefit derived by such Partner from any transaction concerning the Partnership or the use of Partnership Property, name, or business connection.
Each Partner shall use their best endeavors to promote the Business and interests of the Partnership, to protect the Partnership's reputation and goodwill, and to refrain from any conduct which might be prejudicial thereto.
Each Partner shall account to the Partnership for any secret profit, commission, or benefit received by them in connection with any transaction of the Partnership or by reason of their position as a Partner.
Each Partner shall indemnify and hold harmless the Partnership and the other Partner from and against any and all losses, damages, liabilities, claims, costs, and expenses (including reasonable legal fees) arising out of or in connection with any willful misconduct, fraud, gross negligence, or material breach of this Agreement by such Partner.
Each Partner shall ensure the proper maintenance of insurance in the name of the Partnership for the protection of its property, personnel, and operations, in such amounts and against such risks as the Partners may unanimously determine.
Each Partner shall promptly notify the other Partner of any material event, circumstance, claim, or demand affecting or likely to affect the Partnership, and shall cooperate in good faith in the management thereof.
Restrictions on the Partners
No Partner shall, without the prior unanimous written consent of the other Partner: assign, transfer, pledge, mortgage, charge, or otherwise encumber or dispose of such Partner's interest in the Partnership, in whole or in part, to any person whatsoever.
No Partner shall, without the prior unanimous written consent of the other Partner, engage in or be concerned with, directly or indirectly, whether as principal, agent, employee, consultant, shareholder (other than as a holder of not more than [Percentage] of the shares of a publicly traded company), partner, or otherwise, any business which competes with the Business of the Partnership.
No Partner shall, without the prior unanimous written consent of the other Partner: borrow money in the name or on the credit of the Partnership; give any guarantee or indemnity on behalf of the Partnership; lend any monies or extend any credit on behalf of the Partnership otherwise than in the ordinary course of business; or compromise, release, or discharge any debt or claim due to the Partnership otherwise than upon full payment.
No Partner shall employ Partnership Property, funds, name, or credit for any purpose other than the business and benefit of the Partnership.
No Partner shall knowingly do any act or omission by which the Partnership Property or the credit of the Partnership may be endangered, nor commit any act which would render the Partnership liable for any penalty, fine, or other sanction.
No Partner shall, except as expressly authorized herein or by unanimous written agreement, enter into any bond, deed, or similar instrument on behalf of the Partnership, nor execute any instrument having the effect of binding the Partnership to any obligation exceeding [Amount] in [Currency].
No Partner shall divulge, disclose, or communicate to any third party any Confidential Information of the Partnership, save in accordance with the section hereof concerning confidentiality.
Any act done by a Partner in contravention of the restrictions set forth in this section shall, as between the Partners, be deemed a material breach of this Agreement entitling the non-defaulting Partner to pursue such remedies as are available under this Agreement and applicable law, including the right to seek buyout of the defaulting Partner's interest.
Admission of New Partners
No new partner shall be admitted to the Partnership save with the prior unanimous written consent of all existing Partners.
Any admission of a new partner shall be effected by means of a written deed of admission or adherence, pursuant to which the incoming partner shall agree to be bound by all the terms, covenants, and conditions of this Agreement, as the same may have been amended or supplemented, as if an original party hereto.
The capital contribution, profit and loss sharing ratio, drawing rights, management rights, and other terms of participation of any new partner shall be as unanimously agreed in writing between the existing Partners and the incoming partner prior to admission.
Upon the admission of a new partner, the Partners shall cause all necessary amendments to be made to the books, records, filings, and registrations of the Partnership, and shall execute such further documents and do such further acts as may be necessary or expedient to give full effect to the admission.
The admission of a new partner shall not of itself constitute a dissolution of the Partnership nor terminate the subsisting rights or obligations of the existing Partners under this Agreement, save as expressly modified by the deed of admission.
Any costs and expenses, including legal and accounting fees, incurred in connection with the admission of a new partner shall be borne as unanimously agreed, failing which such costs shall be borne by the Partnership.
The existing Partners shall be under no obligation to admit any proposed new partner, and may withhold their consent in their sole and absolute discretion without the need to provide any reason therefor.
Withdrawal and Buyout of a Partner
Should either Partner (the "Withdrawing Partner") wish to withdraw from the Partnership, the Withdrawing Partner shall deliver to the other Partner (the "Remaining Partner") written notice of withdrawal not less than [Number] days prior to the proposed date of withdrawal (the "Withdrawal Notice").
Upon receipt of the Withdrawal Notice, the Remaining Partner shall have the right (but not the obligation) to acquire the entire interest of the Withdrawing Partner in the Partnership at Fair Value, in accordance with the procedures set forth in this section.
The Fair Value of the Withdrawing Partner's interest shall be determined by agreement between the Partners within [Number] days of the Withdrawal Notice. Failing such agreement, the Fair Value shall be determined by an independent valuer mutually appointed by the Partners, whose determination shall be final and binding upon the Partners save in the case of manifest error.
If the Partners are unable to agree upon the appointment of the independent valuer within [Number] Business Days, either Partner may apply to [Appointing Authority] for the appointment of such valuer. The fees and expenses of the independent valuer shall be borne equally by the Partners.
The purchase price for the Withdrawing Partner's interest shall be paid by the Remaining Partner in [Number] equal installments, the first such installment being payable within [Number] days of the final determination of Fair Value, and subsequent installments at intervals of [Period] thereafter, together with interest at a rate of [Percentage] per annum on the outstanding balance.
Upon payment of the purchase price in full (or upon the giving of adequate security for payment acceptable to the Withdrawing Partner), the Withdrawing Partner shall execute all such documents and do all such acts and things as may be necessary to effectuate the transfer of such Partner's interest to the Remaining Partner, and shall cease to be a Partner of the Partnership.
If the Remaining Partner elects not to exercise the right of buyout within [Number] days of final determination of the Fair Value, the Partnership shall be dissolved and wound up in accordance with the provisions of this Agreement concerning dissolution.
In the event of the death, permanent incapacity, insolvency, or bankruptcy of a Partner, the same shall be deemed to constitute a Withdrawal Notice, and the provisions of this section shall apply mutatis mutandis, with the estate, trustee, or legal representative of such Partner being treated as the Withdrawing Partner.
Following the completion of a buyout, the Remaining Partner may elect to continue the Business, either as a sole proprietorship or in such other form as such Partner may lawfully adopt, and shall be entitled to the exclusive use of the Partnership's name, goodwill, and property.
Dissolution and Winding Up
The Partnership shall be dissolved upon the occurrence of any of the following events: the unanimous written agreement of the Partners to dissolve; the completion of the buyout procedure in circumstances where the Remaining Partner elects not to continue the Business; the entry of a final judicial decree ordering dissolution; or the occurrence of any event which renders the continuation of the Partnership unlawful.
Upon dissolution, the Partnership shall not immediately cease but shall continue solely for the purpose of winding up its affairs, realizing its assets, discharging its liabilities, and distributing any surplus to the Partners.
The winding up of the Partnership shall be conducted jointly by the Partners, or by such liquidator as the Partners may unanimously appoint for that purpose. The liquidator shall have all such powers as may be necessary or expedient to carry out the winding up.
In the course of winding up, the assets of the Partnership shall be applied in the following order of priority: first, in the discharge of all debts and liabilities of the Partnership owed to persons other than the Partners; second, in the discharge of any loans or advances made by the Partners to the Partnership, together with any accrued interest thereon; third, in the repayment to each Partner of the balance standing to the credit of such Partner's Capital Account; and fourth, in the distribution of any remaining surplus to the Partners in equal shares.
If the assets of the Partnership are insufficient to satisfy all the liabilities enumerated above, the deficiency shall be contributed by the Partners in equal shares.
The Partners shall cause all necessary filings, notifications, and registrations to be made with the relevant governmental and administrative authorities to give effect to the dissolution and termination of the Partnership.
A final accounting shall be prepared upon the completion of the winding up, which shall be signed by both Partners (or their legal representatives) as evidence of their approval and release.
Upon the completion of the winding up and the distribution of all remaining assets, the Partnership shall be deemed terminated and the Partners shall be released from all further obligations hereunder, save for those obligations which by their nature are intended to survive termination.
Confidentiality and Non-Competition
Each Partner shall at all times, both during the subsistence of the Partnership and following the cessation of such Partner's involvement therein, hold in strict confidence all Confidential Information of the Partnership, and shall not use or disclose any such Confidential Information save as expressly permitted by this Agreement or with the prior written consent of the other Partner.
The obligations of confidentiality set forth herein shall not apply to any information which: is or becomes publicly available other than through a breach of this Agreement; was lawfully in the possession of the receiving Partner prior to disclosure by the Partnership; is independently developed by the receiving Partner without reference to Confidential Information; or is required to be disclosed by law, regulation, or order of a court or competent authority, provided that the disclosing Partner gives prompt notice thereof to enable the other Partner to seek appropriate protective measures.
During the subsistence of the Partnership and for a period of [Number] years following the cessation of such Partner's involvement therein (whether by withdrawal, buyout, dissolution, or otherwise), no Partner shall, directly or indirectly, within the territory of [Geographic Area], engage in, be concerned with, or have any financial interest in any business which competes with the Business carried on by the Partnership.
For the same period, no Partner shall, directly or indirectly, solicit, induce, or attempt to induce any customer, client, supplier, employee, or consultant of the Partnership to cease dealing with the Partnership or to transfer their custom, services, or employment to any competing business.
The Partners acknowledge that the restrictions contained in this section are reasonable and necessary for the protection of the legitimate interests of the Partnership, and that any breach thereof would cause irreparable harm for which monetary damages would be an inadequate remedy.
Accordingly, in the event of any breach or threatened breach of the provisions of this section, the Partnership and the non-breaching Partner shall be entitled to seek injunctive relief and any other equitable remedy, in addition to such other remedies as may be available at law.
If any restriction contained in this section is held by any court or tribunal of competent jurisdiction to be unenforceable by reason of its extent, duration, geographic scope, or otherwise, such restriction shall be deemed to be modified to the minimum extent necessary to render it enforceable, and shall apply with such modification as if it had originally been so expressed.
Governing Law and Dispute Resolution
This Agreement and all matters arising out of or in connection with it, including its formation, validity, interpretation, performance, breach, and termination, shall be governed by and construed in accordance with the laws of [Country/Jurisdiction], without regard to its conflict of laws principles.
Any dispute, controversy, claim, or difference arising out of or in connection with this Agreement, including any question regarding its existence, validity, breach, or termination (a "Dispute"), shall first be the subject of good-faith negotiation between the Partners for a period of not less than [Number] days from the date on which written notice of the Dispute is given by one Partner to the other.
If the Dispute is not resolved by negotiation within the said period, the Partners shall endeavor to resolve the Dispute by mediation administered by [Mediation Institution], in accordance with its prevailing rules, before resorting to arbitration or litigation.
If the Dispute remains unresolved following mediation (or if either Partner declines to participate in mediation), the Dispute shall be finally settled by arbitration under the rules of [Arbitration Institution], by a sole arbitrator appointed in accordance with such rules. The seat of arbitration shall be [City, Country], and the language of the arbitration shall be [Language].
The award of the arbitrator shall be final and binding upon the Partners, and judgment thereon may be entered in any court of competent jurisdiction. Each Partner shall bear its own costs of the arbitration, save that the arbitrator shall have the power to allocate costs between the Partners as he or she sees fit.
Notwithstanding the foregoing, either Partner may at any time apply to a court of competent jurisdiction for interim or conservatory relief, including injunctive relief, in support of its position pending the resolution of the Dispute.
Pending the resolution of any Dispute, the Partners shall continue to perform their respective obligations under this Agreement, save in respect of those matters which are the subject of the Dispute.
Miscellaneous Provisions
This Agreement, together with any documents expressly referred to herein, constitutes the entire agreement between the Partners with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, between them in relation thereto.
No amendment, modification, variation, or supplement to this Agreement shall be effective or binding unless made in writing and signed by both Partners.
No failure or delay by either Partner in exercising any right, power, or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise preclude any further exercise of such right, power, or remedy. Any waiver must be in writing and signed by the Partner granting the same.
If any provision of this Agreement is held by any court or tribunal of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and such provision shall be deemed modified to the minimum extent necessary to render it valid and enforceable.
Neither Partner may assign, transfer, delegate, or otherwise dispose of any of their rights or obligations under this Agreement without the prior written consent of the other Partner, and any purported assignment in contravention hereof shall be null and void.
All notices, demands, requests, and other communications required or permitted hereunder shall be in writing and shall be deemed duly given if delivered personally, sent by registered or recorded mail with proof of receipt, or sent by electronic mail with confirmation of receipt, in each case to the address of the recipient Partner as set forth in this Agreement or to such other address as such Partner may have notified in writing.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument. Electronic or facsimile signatures shall be deemed equivalent to original signatures for all purposes.
Nothing in this Agreement shall confer or purport to confer upon any third party any right, benefit, or remedy of any nature whatsoever, and no third party shall have any right to enforce any provision of this Agreement.
The provisions of this Agreement which by their nature are intended to survive the termination, dissolution, or expiration of this Agreement, including but not limited to those concerning confidentiality, non-competition, dispute resolution, and governing law, shall so survive.
IN WITNESS WHEREOF, the Partners have executed this Business Partnership Agreement as of the Effective Date first above written.
PARTNER ONE:
Signature: ______________________________
Printed Name: [Partner One Full Legal Name]
Address: [Full Residential Address]
Identification/Passport No.: [Number]
Date: ______________________________
PARTNER TWO:
Signature: ______________________________
Printed Name: [Partner Two Full Legal Name]
Address: [Full Residential Address]
Identification/Passport No.: [Number]
Date: ______________________________
WITNESS 1:
Signature: ______________________________
Printed Name: [Witness Full Name]
Address: [Witness Address]
Date: ______________________________
WITNESS 2:
Signature: ______________________________
Printed Name: [Witness Full Name]
Address: [Witness Address]
Date: ______________________________