The Legal Element
PARTNERSHIP DEED
This Partnership Deed is executed on this [Day] of [Month, Year], at [Location], by and between:
- [Partner 1 Name], son/daughter of [Father’s Name], residing at [Complete Address] (hereinafter referred to as the “First Partner”).
- [Partner 2 Name], son/daughter of [Father’s Name], residing at [Complete Address] (hereinafter referred to as the “Second Partner”).
Collectively referred to as the “Partners”.
1. NAME AND STYLE OF THE PARTNERSHIP
The name of the partnership shall be [Partnership Name] and it shall be carried out under the name [Trading Name/Firm Name].
The registered office of the firm shall be situated at [Business Address], or at any other place the Partners may mutually decide.
2. COMMENCEMENT OF BUSINESS
This Partnership shall commence on [Commencement Date].
3. NATURE OF BUSINESS
The Partners hereby agree to jointly engage in the business of [describe business activity, e.g., retail, trading, manufacturing], and any other business as the Partners may mutually decide.
4. CAPITAL CONTRIBUTION
The capital for the business shall be contributed as follows:
- [Partner 1 Name] shall contribute a sum of ₹[Amount] in cash, assets, or property as capital.
- [Partner 2 Name] shall contribute a sum of ₹[Amount] in cash, assets, or property as capital.
The total capital contribution will be ₹[Total Amount]. The Partners may increase or reduce the capital as mutually agreed.
5. PROFIT AND LOSS SHARING
The profits and losses of the business shall be divided among the Partners as follows:
- [Partner 1 Name]: [X%]
- [Partner 2 Name]: [X%]
The distribution ratio may be amended only with the consent of all Partners, as documented in writing.
6. DUTIES AND RESPONSIBILITIES OF PARTNERS
The duties and responsibilities of each Partner are as follows:
- [Partner 1 Name]: Shall be responsible for [mention specific duties, e.g., finance management, bookkeeping, etc.].
- [Partner 2 Name]: Shall be responsible for [mention specific duties, e.g., operations, sales, marketing, etc.].
Both Partners shall mutually agree on the daily operations, and neither Partner shall act in a way that could jeopardize the partnership without prior consultation with the other Partner.
7. MANAGEMENT AND DECISION MAKING
- The firm shall be managed jointly by the Partners, and decisions will be made by mutual consent.
- In case of a tie or dispute, [arbitration/mediation] will be used to resolve the matter.
- Major decisions, including but not limited to [major financial decisions, capital expenditures, hiring new staff], shall require the written consent of both Partners.
8. SALARIES AND DRAWINGS
- [Partner 1 Name] and [Partner 2 Name] shall be entitled to a fixed salary of ₹[Amount] per month (optional).
- Drawings may be made by each Partner from the business, subject to prior mutual consent. Each Partner may draw a sum of up to ₹[Amount] per month.
9. ADMISSION OF NEW PARTNER
A new partner may be admitted to the firm only with the unanimous consent of the existing Partners. The terms of admission shall be determined at the time of admission.
10. RETIREMENT AND EXPULSION
- Any Partner may retire from the partnership with [X months] written notice to the other Partner(s).
- A Partner may also be expelled by unanimous decision of the remaining Partners for reasons such as [examples: misconduct, inability to perform duties].
Upon retirement or expulsion, the retiring/expelled Partner shall be entitled to their share of profits until the date of exit, and the assets/liabilities will be settled according to their contribution to the partnership.
11. DISSOLUTION OF PARTNERSHIP
The partnership may be dissolved by mutual consent or under the following circumstances:
- [List circumstances, e.g., bankruptcy, failure to operate business, insolvency].
- Upon dissolution, the assets and liabilities will be divided among the Partners in proportion to their capital contributions. An independent auditor may be appointed to value assets for this purpose.
12. ARBITRATION AND DISPUTE RESOLUTION
Any dispute or claim arising from this agreement shall be resolved through [arbitration/mediation] under the [Arbitration and Conciliation Act, 1996]. The arbitrator’s decision will be binding on all Partners.
13. TRANSFER OF PARTNERSHIP INTEREST
None of the Partners shall transfer or assign their share of the business without the consent of the other Partners.
14. NON-COMPETE CLAUSE
- During the term of the partnership and for [X years] following the termination or dissolution of the partnership, the Partners shall not engage in a business that directly competes with the existing business of the partnership within [Geographic Area].
15. CONFIDENTIALITY
The Partners agree to maintain the confidentiality of the business’s operations, financials, and trade secrets. This clause shall continue to apply even after the termination of the partnership.
16. MISCELLANEOUS CLAUSES
- Governing Law: This Deed shall be governed by the laws of [jurisdiction].
- Amendments: Any amendments to this Deed must be made in writing and signed by all Partners.
- Indemnity: The Partners shall indemnify each other against any losses or liabilities arising out of the other’s negligence or breach of this Agreement.
SIGNATURES OF PARTNERS
We, the undersigned, confirm that the terms of this Partnership Deed have been read and understood. We voluntarily accept and agree to be bound by them.
[Partner 1 Name]
(Signature)
Date: [Date]
[Partner 2 Name]
(Signature)
Date: [Date]
WITNESSES
We, the undersigned witnesses, confirm that the Partners have signed this Deed in our presence:
[Witness 1 Name]
(Signature)
Address: [Witness Address]
Date: [Date]
[Witness 2 Name]
(Signature)
Address: [Witness Address]
Date: [Date]