SamplePartnershipDeed/Agreement

ThisPartnershipAgreementismadeon[InsertDate]between[InsertNameofParty1]and[InsertNameofParty2].

NameandBusiness
The parties hereby form a partnership under the name of [Insert Business Name] to produce [Insert Business
Product/Service].Theprincipalofficeofthebusinessshallbe[InsertAddress].

Term
Thepartnershipshallbeginon[InsertDate],andshallcontinueuntilterminated.

Capital
Thecapitalofthepartnershipshallbecontributedincashbythepartnersasfollows:
Aseparatecapitalaccountshallbemaintainedforeachpartner.
Neitherpartnershallwithdrawanypartoftheircapitalaccount.
Upon the demand of either partner, the capital accounts of the partners shall be maintained at all
timesintheproportionsinwhichthepartnersshareintheprofitsandlossesofthepartnership.

ProfitandLoss
The net profits of the partnership shall be divided equally between the partners and the net losses
shall be borne equally by them. A separate income account shall be maintained for each partner.
Partnership profits and losses shall be charged or credited to the separate income account of each
partner. If a partner has no credit balance in their income account, losses shall be charged to their
capitalaccount.

SalariesandWithdrawals
Neither partner shall receive any salary for services rendered to the partnership. Each partner may,
fromtimetotime,withdrawthecreditbalanceintheirincomeaccount.

Interest
No interest shall be paid on the initial contributions to the capital of the partnership or on any
subsequentcontributionsofcapital.

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 ManagementDutiesandRestrictions
Thepartnersshallhaveequalrightsinthemanagementofthepartnershipbusiness,andeachpartner
shall devotetheirentiretimetotheconductofthebusiness.Withouttheconsentoftheotherpartner
neitherpartnershallonbehalfofthepartnershipborroworlendmoney,ormake,deliver,oraccept
anycommercialpaper,orexecuteanymortgage,securityagreement,bond, or lease,or purchaseor
contracttopurchase,orsellorcontracttosellanypropertyfororofthepartnershipotherthanthe
typeofpropertyboughtandsoldintheregularcourseofitsbusiness.

Banking
Allfundsofthepartnershipshallbedepositedinitsnameinsuchcheckingaccountoraccountsasshall
bedesignatedbythepartners.Allwithdrawalstherefromaretobemadeuponcheckssignedbyeither
partner.

Books
Thepartnershipbooksshallbemaintainedattheprincipalofficeofthepartnership,andeachpartner
shallatalltimeshaveaccessthereto.Thebooksshallbekeptonafiscalyearbasis,andshallbeclosed
andbalancedattheendofeachfiscalyear.Anauditshallbemadeasoftheclosingdate.

VoluntaryTermination
The partnership may be dissolved at any time by agreement of the partners, in which event the
partnersshallproceedwithreasonablepromptnesstoliquidatethebusinessofthepartnership. The
partnership name shall be sold with the other assets of the business. The assets of the partnership
businessshallbeusedanddistributedinthefollowingorder:
(a) topayorprovideforthepaymentofallpartnershipliabilitiesandliquidatingexpensesandobligations;
(b) toequalizetheincomeaccounts ofthepartners;
(c) todischargethebalanceoftheincomeaccountsofthepartners;
(d) toequalizethecapitalaccountsofthepartners;and
(e) todischargethebalanceofthecapitalaccountsofthepartners.

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 Death
Upon the death of either partner, the surviving partner shall have the right either to purchase the
interestofthedecedentinthepartnershiportoterminateandliquidatethepartnershipbusiness.If
thesurvivingpartnerelectstopurchasethedecedent'sinterest,heshallservenoticeinwritingofsuch
election,withinthreemonthsafterthedeathofthedecedent,upontheexecutororadministratorof
thedecedent,or,ifatthetimeofsuchelectionnolegalrepresentativehasbeenappointed,uponany
oneoftheknownlegalheirsof thedecedentatthelastknownaddressofsuchheir.
(a) Ifthesurvivingpartnerelectstopurchasetheinterestofthedecedentinthepartnership,thepurchase
priceshallbeequaltothedecedent'scapitalaccountasatthedateoftheirdeathplusthedecedent's
incomeaccountasattheendofthepriorfiscalyear,increasedbytheirshareofpartnershipprofitsor
decreasedbytheirshareofpartnershiplossesfortheperiod fromthebeginningofthefiscalyearin
which their death occurred until the end of the calendar month in which their death occurred, and
decreasedbywithdrawalschargedtotheirincomeaccountduringsuchperiod.Noallowanceshallbe
madeforgoodwill,tradename,patents,orotherintangibleassets,exceptasthoseassetshavebeen
reflected onthe partnershipbooksimmediately priortothedecedent'sdeath;butthesurvivorshall
neverthelessbeentitledtousethetradenameofthepartnership.
(b) Exceptashereinotherwisestated,theprocedureastoliquidationanddistributionoftheassetsofthe
partnership business shall be the same as stated in paragraph 10 with reference to voluntary
termination.

Arbitration
Any controversy or claim arising out of or relating to this Agreement, or the breach hereof, shall be
settled by arbitration in accordance with the rules, then obtaining, of the American Arbitration
Association,andjudgmentupontheawardrenderedmaybeenteredinanycourthavingjurisdiction
thereof.InwitnesswhereofthepartieshavesignedthisAgreement.

Executedthis ______________dayof_________________,[InsertYear]in[InsertCity,State].

________________________ ________________________
SignatureofParty1 SignatureofParty2

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This sample template has been downloaded from www.dineshbakshi.com. Only to be used for educational purpose.