A partnership agreement is a document of cooperation and joint activities between two or more parties. When several individuals wish to work together by pooling their financial resources, they need guarantees. The partners wish to be heard by each other. However, verbal agreements are not sufficient tools for the above purposes, and so a contract is made.
An agreement is possible between legal entities, sole proprietors, and individuals, Furthermore, there are no restrictions as to the combination of the parties. Collaboration reduces financial costs and time. This is due to the fact that each party undertakes certain obligations.
Before drawing up an agreement, it is necessary to discuss all the specifics of engagement and cooperation. The outcome of the mutual understanding should be formalized in the document. However, often amendments are required before such a deed can be signed, which causes an extension of the time needed for approvals and delays the commencement of cooperation. To accelerate all processes, it is recommended to use dedicated software, for instance, the Pandadoc software. It will help you quickly generate, review, and sign the document.
Partnership Contract template: when is it relevant?
The Partnership Contract template is offered for users’ convenience. It greatly reduces the time required to generate a document. If you want to solve the issue of cooperation as quickly as possible, use one of the built-in Pandadoc templates.
One of the interesting features is that the contract template can be amended and supplemented. The document already has certain fields to be filled in. However, should it be necessary, it is possible to delete some of them or add your own blocks. Basically, the contract should include the following information:
- Introduction and subject matter of the agreement. This part contains the data about the parties, for instance, when the company was established, its legal address, and authorized representative. Such information as the composition of the founders and the number of shares may also be relevant in some cases. Then, the subject matter of the agreement is described with all applicable details.
- Obligations of the parties. Information about what each participant will be responsible for, for example, the selection of premises for rent, finding clients, etc.
- Financial terms and conditions. Each party invests a certain amount, which should be specifically indicated in the document.
- Features of the income distribution. As a rule, the partners distribute the profit in accordance with the investment shares. Nevertheless, other options are also possible.
- Liability of the parties. One partner can demand compensation from the other partner if the latter has breached the terms of the contract.
- Confidentiality provisions. This is a standard clause that regulates the protection of commercial secrets, as well as stipulates non-disclosure of financial information without the consent of the other party.
- Force majeure. Here it is prescribed that the parties shall not be liable for failure to perform their obligations due to force majeure circumstances.
- Amendment and termination. This paragraph stipulates the reasons for the cooperation to be terminated. It also provides the conditions that enable parties to amend and supplement the provisions.
- Resolution of disputes. There are procedures for pre-trial settlement of the dispute, and the establishment of deadlines for the response to claims.
- Details of the parties. It provides complete information about the partners.
After completing the information, you need to sign the document and send it to the other party for approval.
Partnership Agreement sample: other features offered by the developers
Pandadoc was developed with current realities in mind, and therefore the focus is on reducing documentation approval time and completeness of the information. Users can add the data, insert videos and images, tables, and other objects. When using the Partnership Agreement sample, it is possible to set up notifications for the other party.