Free partnership agreement template for business partners. Covers capital contributions, profit sharing, management duties, dispute resolution, and dissolution.
This Partnership Agreement ("Agreement") is entered into on [Date] by and between [Partner 1 Name] and [Partner 2 Name] (collectively, the "Partners"). The Partners hereby form a general partnership under the name [Partnership Name] (the "Partnership") for the purpose of [describe business purpose]. The principal place of business shall be [Address].
Each Partner shall contribute the following to the Partnership: [Partner 1]: [Currency] [Amount] in cash and/or [description of non-cash assets]; [Partner 2]: [Currency] [Amount] in cash and/or [description of non-cash assets]. Additional capital contributions may be required by unanimous consent. No Partner shall withdraw their capital contribution without the written consent of all Partners.
Net profits and losses shall be allocated among the Partners as follows: [Partner 1]: [X]%; [Partner 2]: [Y]%. Profits shall be distributed [monthly/quarterly/annually] within [15] days of the close of each period. Each Partner may draw a monthly salary of [Amount] before profit distribution, subject to sufficient cash flow. Losses shall be shared in the same ratio as profits.
All Partners shall have equal rights in the management and conduct of the Partnership business. Decisions regarding ordinary business operations may be made by any Partner. The following decisions require unanimous consent: (a) borrowing in excess of [Amount]; (b) entering contracts exceeding [Amount]; (c) hiring or terminating employees; (d) admitting a new partner; (e) selling or mortgaging Partnership assets.
A Partner may withdraw from the Partnership by providing [90] days' written notice. The withdrawing Partner's interest shall be valued at fair market value as determined by an independent appraiser. The remaining Partner(s) shall have the option to purchase the withdrawing Partner's interest over [12/24] months in equal installments. A withdrawing Partner shall not compete with the Partnership for [12] months.
The Partnership shall dissolve upon: (a) unanimous agreement of the Partners; (b) the death or incapacity of a Partner (unless the remaining Partners elect to continue); (c) bankruptcy of the Partnership; (d) court order. Upon dissolution, the Partnership assets shall be liquidated and applied first to debts and obligations, then to return of capital contributions, and finally distributed as profits.
Signature — Party A
Signature — Party B
Step 1: Choose your partnership agreement template. Log in to ContractClaw Sign and select the Partnership Agreement template from your dashboard. This template covers capital contributions, profit sharing, management duties, decision-making authority, dispute resolution, withdrawal, and dissolution for business partnerships.
Step 2: Customize the partnership terms. Fill in each partner's full legal name and the partnership name. Describe the business purpose and principal place of business. For each partner, specify the capital contribution — cash amounts and descriptions of any non-cash assets (equipment, intellectual property, existing client relationships). Set the profit and loss sharing percentages for each partner, the distribution frequency (monthly, quarterly, or annually), and any monthly salary draws each partner may take before profit distribution.
Step 3: Define management and decision-making rules. Specify whether all partners have equal management rights or if roles are divided. List the decisions that require unanimous consent: borrowing above a threshold, contracts exceeding a specified amount, hiring or terminating employees, admitting new partners, and selling partnership assets. For two-partner businesses, include a deadlock resolution mechanism — a mediator, advisory board, or other tiebreaker.
Step 4: Set withdrawal and dissolution provisions. Define the notice period for voluntary withdrawal (typically 90 days). Specify how a departing partner's interest will be valued (independent appraisal at fair market value) and the buyout payment schedule (12-24 months in equal installments). Include a non-compete period for withdrawing partners. List the events that trigger dissolution: unanimous agreement, death or incapacity of a partner, bankruptcy, or court order. Define the asset liquidation priority: debts first, then capital return, then profit distribution.
Step 5: Add signers. Enter each partner's full legal name and email address. Every partner must sign the agreement. If any partner is signing on behalf of an existing business entity, include their title and authority.
Step 6: Send for signature. Click Send — all partners receive the partnership agreement via email and WhatsApp with OTP verification. Each partner reviews the capital contributions, profit sharing, management structure, and dissolution terms before signing from any device.
Step 7: Track and download. Monitor signing progress in your ContractClaw Sign dashboard — see exactly which partners have signed and who is pending. Once all partners sign, the agreement is sealed with a SHA-256 hash, RFC 3161 timestamp, and QR verification code. Each partner automatically receives a copy. Download the executed PDF anytime — it is the foundational document governing your business relationship.
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View templateDisclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.
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