A successful business connection is built on the foundation of a partnership agreement letter. Regardless of how well the partners know each other or how much faith they have in each other, this crucial legal contract safeguards everyone’s interests in the event of a dispute.
In reality, having a practical, realistic partnership agreement letter can assist partners in resolving problems amicably and possibly even moving forward in a continuing relationship when it might otherwise be dissolved. Use our partnership agreement letter samples as a guide when writing your own.
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Sample 1 - Partnership Agreement Letter
COMPANY LETTERHEAD IF APPLICABLE
Name of Sender
Name of Sender’s Business if applicable
Address of Sender
City, State, Zip Code
DATE
Name of Receiver
Name of Receiver’s Business if applicable
Address of Receiver
City, State, Zip Code
Dear Name of Receiver,
This is a Letter of Intent that proposes to outline the partnership you and I discussed on DATE. I do not consider the terms and conditions stated in this letter as binding and am open to negotiation.
We have agreed that we will enter into partnership for the purposes of starting a catering service.
My main responsibility will be food preparation and purchasing, and your responsibility will be accounts and marketing.
We will pay ourselves and our employees a suitable salary and split any profits after salaries 50-50. We are still negotiating the amount of salaries.
We have also agreed to take out a Small Business Loan to cover the start-up expenses and will both be signatory for that loan.
We have together created a business plan that clearly states our intentions for the short-term as well as the next five years, and this plan has been approved by the bank.
I propose we meet in two weeks on DATE at the office of Name of Lawyer to confirm the salaries and sign a contract of partnership.
We can meet at a time of your convenience to discuss the points on which we have not yet agreed before we meet the lawyer. Please call me at 555-123-4567 or contact me at Name@email.com to set up a meeting.
This letter is a formal expression of intent to start a partnership with you to open a catering service.
We need to decide the main points of financial distribution and meet the lawyer to sign the contract.
Sincerely,
Signature of Sender
Printed Name of Sender
Sample 2 - Partnership Agreement Letter
PARTNERSHIP AGREEMENT LETTER
THIS AGREEMENT is made and entered into at _____________________ (place of execution), this _____ day of ___________________, 20___, by and between _______________________ (name and address of first partner), _______________________ (name and address of second partner) and ___________________ (name and address of third partner) (hereafter referred to collectively as the “Partners” or separately as a “Partner”).
1. Business Name and Purpose. The Partners hereby form a partnership with the name __________________, for the purpose of ______________________. The principal place of business is located at ___________________________________.
2. Capital Contributions. The below-named Partners will make initial capital contributions as defined below.
______________________________ _______________
Partner’s Name Contribution
______________________________ _______________
Partner’s Name Contribution
______________________________ _______________
Partner’s Name Contribution
Each contribution shall be made in cash and held in a separate capital account in each Partner’s name. No withdrawals may be made from these capital accounts.
3. Profits and Losses. Each Partner shall be given a separate income account in his name. All net profits will be divided equally among all of the partners.
Similarly, all partners will equally bear all debts and losses. Profits will be added to each income account on a quarterly basis. Losses will be withdrawn from the income account on a quarterly basis.
If a Partner’s income account has no balance, then the amount of losses will be withdrawn from his capital account.
4. Borrowing or Encumbrance. No Partner may, without the previous written consent of all other Partners, borrow money on behalf of the Partnership, hire a subcontractor or employee, or encumber his share.
5. Delegation of Authority. The Partners may jointly resolve to delegate any authority or power relating to management of the business of the partnership to any of the partners.
This authority or power continues until it is rescinded by an subsequent joint resolution.
6. Accounting. The Partnership’s account books shall be maintained at the primary place of business. Each partner shall have full access to the books at all times.
The accounts will be kept on a fiscal year basis that matches the calendar year from January to December.
7. Death. Upon the death of any partner, the remaining partners shall have the right to purchase the decedent’s share of the partnership or to terminate this agreement, thereby liquidating the partnership.
8. Retirement. Any partner shall have the right to retire from the Partnership at the end of any calendar month after this agreement has been in effect for not less than ____ years. Written notice of the intent to retire must be provided to the remaining partners _____ days prior to the intended retirement date. The remaining partners may elect to purchase the retiree’s share of the partnership or to terminate this agreement.
9. New Partners. No one shall be admitted as a new partner without the express, written agreement of all existing partners.
10. Arbitration. The Partners consent to arbitration according to the American Arbitration Association to resolve any disputes, controversies or claims arising from this agreement.
Dated this __ day of _________, 20__.
_________________________________ _____________________________
Partner 1 signature Partner 2 signature
__________________________________
Partner 3 signature
