Sample of a Partnership Agreement in Nigeria

The capital of the company is the sum of twenty million naira (N20.000.000.00), which must be contributed by the shareholders to 70-30% of John and Mary Otto or Paul and Lois Etteh immediately after the date of this agreement. Finally, in order to reduce the potential for any form of conflict or complication between the parties who intend to form a corporate structure and participate proportionately in the capital, profits and losses of the company, it is essential to create a partnership agreement that binds the parties for this purpose. Without an agreement, you are subject to the Standard Rules, usually the Uniform Partnership Act or the revised Uniform Partnerships Act. Standard rules may not be enough to govern your business because each partnership is different and has different legal needs. A partnership agreement can also be mentioned: Many partnerships contain confidentiality, solicitation and non-competition clauses. This will protect your business from unhappy former partners. Partnership agreements can also limit the behaviour of partners to the outside world. This protects the image of your company. This Partnership Agreement contains the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior negotiations, agreements and understandings in this regard. This Agreement may only be modified by a written document duly signed by all parties. You and your partners need to agree on certain issues of authority.

For example, will your business have a line of credit? Which partners can sign contracts? What about expenses? This section of your agreement should address these issues. Your partnership may need to dissolve at some point. There are many reasons for dissolution, such as: 8. BANK. All the company`s funds are deposited in their name in one or more current accounts designated by the partners. All withdrawals are made after verification signed by one of the two partners. Most agreements contain a so-called buy-sell agreement. In this way, a deceased or disabled partner can be excluded from the partnership. It may also be a good idea to include key person insurance in your partnership. This insurance policy can keep your business afloat if an important partner dies. A partnership agreement, also known as a partnership agreement, is a written agreement between two or more people who intend to form and continue to run a business (known as a partnership) for the purpose of making a profit.

There are three main types of partnerships: limited liability companies, limited partnerships and limited liability partnerships. Each type has a different impact on your management structure, investment opportunities, the impact of liability and taxation. Be sure to list the type of partnership you and your partners choose in your partnership agreement. Investors, lenders and professionals often ask for an agreement before allowing partners to receive investment funds, obtain financing or receive appropriate legal and tax assistance. The property, which is the company`s headquarters at no. 12 Koggi Avenue, Kebbi, Kebbi State was introduced by JOHN & MARY OTTO and this property remains the property of JOHN & MARY OTTO after the end of the partnership. Part of your agreement should include the tasks necessary to maintain your business. This may include rules for record keeping and where records are kept.

The maintenance section can also contain rules for corporate meetings, such as . B how many partners are considered a quorum. A partnership may be formed orally or in writing by entering into a partnership agreement to establish the relationship between the parties to the agreement. A partnership agreement is a legal contract that contains the terms that govern how the partnership is operated between the parties involved in the creation of a structured partnership in order to avoid conflicts between the partners. The law may presume that a partnership exists as soon as the essential elements of a partnership are included in the partnership agreement. With this model partnership agreement, you define the expectations and conditions of your partnership with your business partner. Download this free partnership agreement template below and customize it to suit your individual legal requirements. 6. INTEREST. No interest is paid on initial contributions to the company`s capital or on subsequent capital contributions. When two or more people start a business, they need a partnership agreement.

This is a legal contract that dictates the operation of the company. These contracts are often very complex. Many companies try to avoid using a partnership agreement, but this can lead to big problems in the future. You need to include basic information in your partnership agreement to set the boundaries of your business. This is in addition to your company`s operating rules. Some of the basic information that your agreement should include are: Some of the terms implicit in a partnership relationship where the partnership agreement is silent are: A family doctor is when two or more people start a for-profit business. In the case of a family physician, each designated partner is also responsible. An LP takes responsibility. One partner is liable without limitation, while another is only liable for its share of ownership. An LLP is when the partners are only responsible for their own actions. Decide which partnership you want to use before drafting your agreement. A partnership agreement must also describe how the business can be sold.

This can be done within the framework of the aforementioned purchase-sale agreement. Make sure all partners agree with the details in this section, as the sale of a business is the cause of many partnership disputes. Once this information is recorded, discussions on the terms of the partnership can begin. 3. CAPITAL. The capital of the company is contributed by the shareholders in cash as follows: A separate capital account must be kept for each shareholder. None of the shareholders may withdraw part of their capital account. At the request of a partner, the capital accounts of the partners shall be kept at all times in the shares in which the partners participate in the profits and losses of the company. Your agreement must include termination terms to decide how the assets will be divided at the end of the company. Your partnership can include different types of partners with different workloads.

Some partners are involved in all aspects of the business. Others can only participate financially. The detailed presentation of the role of each partner is at the heart of your agreement. A limited liability company is a more formal corporate structure that combines the limited liability of a corporation with the tax benefits of a partnership. Start an LLC with an LLC operating agreement. Without this agreement, your state`s standard partnership rules apply. For example, if you don`t detail what happens when a member leaves or dies, the state can automatically dissolve your partnership based on its laws. If you want something other than the de facto laws of your state, an agreement allows you to retain control and flexibility over how the partnership is supposed to work. After the death of a partner, the surviving partner has the right either to acquire the deceased`s shares in the partnership or to terminate the partnership business and liquidate it. A partnership agreement is very detailed. It should cover all areas of your business. There are certain elements that it must contain.

This includes how things are going and what each partner contributes to the business. You and your partners need to discuss and agree on several things. 9. BOOKS. Partnership books are kept at the partnership`s head office and each partner has access to them at all times. Books are kept on a fiscal year basis starting with ____ Any group of people entering into a business partnership, whether family members, friends, or random acquaintances outside the Internet, should invest in a partnership agreement. This agreement gives individuals more control over how their partnerships are managed on a day-to-day basis and managed at a long-term strategic level. Any dispute between the Parties relating to matters relating to matters relating to partnership or the interpretation of this Agreement, whether before or after the determination of the partnership, shall be appointed as the sole arbitrator under the provisions of the Arbitration and Conciliation Act. Cap. A18 LFN 2004 Any agreement between individuals, friends or families to start a for-profit business creates a partnership.

Since there is no formal registration process, a written partnership agreement shows a clear intention to form a partnership. It also lays down the foundations of the partnership in writing. (a) pay or settle all liabilities arising out of the partnership and the liquidation of expenses and obligations; One partner or the entire partnership has gone bankrupt. .