Business partnership contract

Free Sample Business Partnership Agreement Template

To help you grow your business, we have created a fairly simple yet reliable business partnership agreement template in Word and PDF versions so you can use it over and over.

What's in this model?

• Contribution

• Division of authority

• Cancellation conditions

What is a business partnership agreement?

A business partnership agreement is a type of contract that is created between two business partners. The purpose of such a contract is to ensure that both parties benefit from their collaboration. In most cases, a business partnership contract is signed at the time of an alliance between a seller and a buyer. But it also happens that this type of document is used when it is a service provider who provides services to a client.

What is a business partnership?

Business partnership is a cooperation agreement between two companies. In this type of collaboration, both parties, the seller and the buyer, benefit from the relationship that is established between them. It also happens that the business partnership is an alliance in which both parties submit to certain obligations towards the other. 

What are the types of business partnership agreements?

 When it comes to a commercial partnership contract, the contracting parties can opt for different types of contracts. Each of these contracts has its own function and aims to ensure the protection of the interests of each of the contracting parties. The different types of commercial partnership contracts are:

• The commercial partnership agreement:

It is a contract that is made between the contracting parties so that they can promote each other. In this contract, the contracting parties help each other and facilitate the sale of their products or services.

• Affiliate contract:

In an affiliate contract, one of the contracting parties exchanges profits in return for the other party buying and promoting their products or services.

In summary, affiliation is a contract by which a person or a company offers a compensation program to people who make it known.

• The franchise agreement:

The franchise contract is a contract by which a person or a company transfers to another person or another company the possibility of exploiting its commercial concept and using its own means to sell products or services in a determined territory.

• The commercial association contract:

In this type of contract, the contracting parties pool their resources in order to facilitate their sale.

How does a business partnership agreement work?

A business partnership agreement is a legal contract between the partners of a company. It spells out details about business operations, ownership, financial matters, and decision-making. Business partner agreements may limit each partner's liability when combined with other legal entity documents.

Who needs a partnership agreement?

If you plan to start a business together with your partner(s), you should consider using a partnership agreement. It will be very risky for you if you start your business without having a proper partnership agreement and it can lead to serious problems in your future working life.

Important Terms

What is included in a partnership agreement?

To write a partnership agreement, you need to consider some of the most important things. An agreement should include the following points:

Name of your partnership: One of the most important things you and your partner(s) need to agree on is the name of your business.

Partnership Contributions and Percentage of Ownership : List the contributions you and your partner(s) will make to the business. Also decide the percentage of ownership based on each partner's contributions to the business.

Distribution of profits, losses and losses: you and your partner must decide how to divide the profits, losses and losses of the business on an equal basis or based on the contribution you or your partner(s) have made to a business.

Partnership Authority: authority Partnership refers to the ability to bind the business to a debt or contractual agreement that may expose the business to unnecessary risk. It is therefore very important to specify in the contract which partner will have the binding authority of a company.

Withdrawal or death of a partner: A partnership agreement should clearly set out the issues relating to the sudden death or removal of any partner from the business. This saves you and your partner(s) serious problems in the future. The agreement should also outline the business valuation process and/or any requirements for maintaining a life insurance policy naming the other partner(s) as beneficiaries.