Partnership Agreement

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PARTNERSHIP AGREEMENT

entered into between:

___________________________________________________________________________ (full name and registration number)
(“the First Partner”)

and

___________________________________________________________________________ (full name and registration number)
(“the Second Partner”)

and

___________________________________________________________________________ (full name and registration number)
(“the Third Partner”)

WHEREBY IT IS AGREED AS FOLLOWS:

1Interpretation and preliminary

The headings of the clauses in this agreement are for the purpose of convenience and reference only and shall not be used in the interpretation of this agreement.

1.1the following terms shall have the meanings assigned to them hereunder:

1.1.1 “the Effective Date” means ______________________ (date from which partnership is to take effect);

1.1.2 “Participation Ratio” means the following ratios:

1.2.2.1the First Partner: _______________________________ (first ratio);

1.2.2.2 the Second Partner:__________________________ (second ratio);

1.2.2.3 the Third Partner: ______________________________ (third ratio);

1.1.3 “the Partners” means _____________________________________________

_________________________________________(insert names of partners)

1.1.4“the Partnership” means the partnership constituted on the effective date between the partners, the terms of which are recorded in this agreement;

2Constitution of partnership

The Partners agree with effect from the Effective Date to carry on the business of

___________________________________________________________ (describe business),

In a partnership under the name _________________________________________________ (name of partnership)

3Duration

3.1The Partnership will commence on the Effective Date and shall continue indefinitely subject to the right of any partner to withdraw from the Partnership by giving not less than _________________(specify) written notice to the other partners

3.2The Partners agree that the Partnership shall not terminate by reason of the death of any partner but shall continue between the surviving partners and the estate of the deceased partner.

4Capital accounts

4.1Each partner shall have a capital account in the books of the Partnership recording the capital contributed and any other capital payment or withdrawal from time to time by such partner. A partner shall not be entitled to withdraw any amount standing to the credit of its capital account without the prior written consent of the other partners.

4.2The capital contributions due by the Partners are as follows:

4.2.1The First Partner: ________________________________________________ (descriptions of capital contributions and if necessary their values)

4.2.2The Second Partner: _____________________________________________ (descriptions of capital contributions and if necessary their values)

4.2.3The Third Partner: _______________________________________________ (descriptions of capital contributions and if necessary their values)

5Loan accounts

Each partner shall have a loan account in the books of the Partnership which shall reflect any loans made to the Partnership.

6Financial year

The financial year of the Partnership shall end on the last day of ________________(specify) in each year. 7Banking account

The banking account of the Partnership shall be in the name of the Partnership at ______________________________________________________(name of bank and branch)

8Books and records

__________________________________________________(Name of partner responsible for keeping books and records) shall keep proper books and records of all transactions concerning the Partnership.Such books and records shall be audited annually by the Partnership’s auditors.

9Financial statements

As soon as possible after the...
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