If you`re venturing into a partnership business, one of the most critical documents you need is a Memorandum of Agreement (MOA). It`s a written contract that outlines the terms and conditions between two or more parties involved in a business partnership. In this article, we`ll take a look at a sample partnership business memorandum of agreement and what to include in it.
Sample Partnership Business Memorandum of Agreement
[Your Company Name]
[Address]
[City, State ZIP Code]
[Phone Number]
[Email]
This Memorandum of Agreement is made on [Date] between [Party 1 Name] and [Party 2 Name]. Both parties agree to enter into a partnership business to [detail the business objective and scope].
1. Responsibilities and Obligations
Both parties agree to the following responsibilities and obligations:
[Party 1 Name] shall be responsible for [detail responsibilities].
[Party 2 Name] shall be responsible for [detail responsibilities].
2. Capital Contributions
Both parties agree to make the following capital contributions:
[Party 1 Name] will contribute [Amount] in cash.
[Party 2 Name] will contribute [Amount] in cash.
3. Profit and Loss Distribution
Both parties agree to the following profit and loss distribution:
[Party 1 Name] shall be entitled to [Percentage of Profit/Loss] of the profit and loss.
[Party 2 Name] shall be entitled to [Percentage of Profit/Loss] of the profit and loss.
4. Management and Decision-Making
Both parties agree to the following management and decision-making procedures:
[Party 1 Name] will be responsible for [detail the areas of responsibility].
[Party 2 Name] will be responsible for [detail the areas of responsibility].
Both parties will work together in making decisions that affect the business.
5. Termination
Either party may terminate this agreement by providing written notice [number of days] days in advance.
6. Dispute Resolution
Any disputes between the parties will be resolved through arbitration.
7. Confidentiality
Both parties agree to maintain strict confidentiality regarding all business operations, transactions, and proprietary information.
8. Governing Law
This agreement shall be governed by and construed in accordance with the laws of [state/province/country].
9. Entire Agreement
This MOA constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements.
Both parties hereby acknowledge and accept the terms and conditions of this agreement.
[Party 1 Name]
Signature: __________________________
Date: _______________________________
[Party 2 Name]
Signature: __________________________
Date: _______________________________
What to Include in a Partnership Business MOA
When drafting a partnership business MOA, it`s crucial to include the following essential details:
1. Business Objective and Scope
Clearly define the business objectives and scope of the partnership.
2. Responsibilities and Obligations
Outline the responsibilities and obligations of each party involved in the partnership.
3. Capital Contributions
Specify the amount of capital each party will contribute to the partnership.
4. Profit and Loss Distribution
Describe how profits and losses will be distributed among the parties involved in the partnership.
5. Management and Decision-Making Procedures
Establish the management and decision-making procedures of the partnership.
6. Termination
Include provisions for how and when the partnership may be terminated.
7. Dispute Resolution
Outline how disputes between the parties will be resolved.
8. Confidentiality
Include clauses that assure confidentiality and protection of the partnership`s proprietary information.
9. Governing Law
Specify the governing law that will apply to the partnership.
10. Signatures
Finally, include a signature line for each party to acknowledge and accept the terms and conditions of the agreement.
In conclusion, a partnership business memorandum of agreement is a crucial document that protects the interests of all parties involved in a business partnership. With our sample MOA and the essential details provided, you can customize your partnership business MOA to suit your specific business needs.