Imagine you have enterd into a agrement with your friend to run a school as Business partners. Clearly draft a practical Business Partnership form of which shares will be 50:50 ratio
Business Partnership Agreement
This Business Partnership Agreement (hereinafter referred to as the "Agreement") is entered into as of [Date] (the "Effective Date") by and between [Your Name], residing at [Your Address], and [Friend's Name], residing at [Friend's Address]. [Your Name] and [Friend's Name] shall collectively be referred to as the "Partners".
1. Name and Nature of Business: The Partners agree to establish and operate a school under the name of [School Name], which shall provide quality education and related services.
2. Duration: This partnership shall commence on the Effective Date and shall continue until either Partner provides written notice of termination at least [Number of days/weeks/months] in advance.
3. Capital Contribution: Both Partners shall contribute an equal amount of capital to the partnership. The initial capital contribution is valued at [Amount in currency] and shall be used for establishing the school, purchasing necessary amenities, and catering to operational expenses.
4. Distribution of Profits and Losses: The profits and losses of the partnership shall be shared equally between the Partners, in a 50:50 ratio. Any profits or losses shall be shared through an agreed-upon distribution method, to be determined annually.
5. Authority and Decision-Making: Each Partner shall have equal authority and decision-making power in the day-to-day operations and major matters concerning the school. Decisions on significant policies, budgets, hiring, and other major issues shall be made jointly and agreed upon by both Partners.
6. Roles and Responsibilities: The Partners shall define their respective roles and responsibilities as co-owners of the school. They shall maintain open communication and cooperate to ensure smooth operation. The Partners may appoint additional staff, such as teachers and administrative personnel, as required.
7. Banking and Financial Matters: The Partners shall jointly open a bank account in the name of the business for all financial transactions. Both Partners will have equal access and signing authority for the account.
8. Recordkeeping and Accounting: The Partners shall maintain accurate and comprehensive records of all financial transactions, including income, expenses, and assets. They shall mutually agree on an accounting system and hire a certified accountant to prepare financial statements as required by law.
9. Dispute Resolution: In case of any dispute or disagreement between the Partners, they shall first attempt to resolve it amicably through negotiation or mediation. If such attempts fail, either Partner may seek legal remedies as permitted by law.
10. Confidentiality: The Partners shall treat all confidential information regarding the school, its students, staff, and any other confidential matters as strictly confidential and shall not disclose it to any third party without the written consent of both Partners.
11. Termination or Dissolution: This Agreement may be terminated or dissolved by mutual consent of the Partners or by any Partner providing written notice of termination as specified in Clause 2. Upon termination, the assets, liabilities, and profits (if any) shall be distributed equally among the Partners.
12. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising hereunder shall be subject to the exclusive jurisdiction of the courts in [Jurisdiction].
In witness whereof, the Partners have executed this Business Partnership Agreement as of the Effective Date.
______________________________ ______________________________
Partner 1 Name Partner 2 Name
______________________________ ______________________________
Partner 1 Signature Partner 2 Signature
Date: ____________________________