This partnership agreement template is a tool that provides a starting point when drafting an agreement for two main types of partnerships, namely, a general partnership or an undeclared partnership. It is not appropriate for a transactional agreement, which is covered by our Transactional Agreement template (Z03200).

Unfortunately, it was not possible to create a template that would also apply to other collaborative arrangements, such as limited partnerships, due to the number of distinct clauses this would require. For example, in the case of a limited partnership, accommodating two different categories of partners (general partner and limited partners). For this reason, we recommend that you use our Limited Partnership Agreement template (A04200). This partnership agreement template is also not suitable for a joint venture agreement, which is a cross between a transactional agreement and a partnership agreement; however, you can use our Joint Venture Agreement template (A08500).

This template uses our standardized system for organizing clauses that will put an end to the confusion currently found in most business agreements. Our innovative system organizes clauses based on a set of contractual "addresses" that are always identified by the same number and represent distinct contractual concepts. All our business agreements are organized according to this straightforward hierarchical structure, which facilitates contract analysis because the clauses are easier to find.

We recommend using this partnership agreement template when forming any type of business partnership, within the limits set out under the adjacent tab "Description" and when the applicable law does not require a mandatory form.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Additional Capital Contribution
0.01.03 Agreement
0.01.04 Breach
0.01.05 Claim
0.01.06 Contribution(s)
0.01.07 Dispute
0.01.08 Encumber / Encumbrance
0.01.09 Expenses
0.01.10 Financial Year
0.01.11 Force Majeure
0.01.12 Intellectual Property
0.01.13 Law
0.01.14 Legal Representatives
0.01.15 Ordinary Resolution
0.01.16 PARTNERS
0.01.17 Partnership
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Registration Declaration (for general partnerships)
0.01.21 Special Resolution
0.01.22 Unit(s)
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Cross-References
0.05.05 Gender and Number
0.05.06 Headings
0.05.07 Accounting Standards
1.00 FORMATION OF PARTNERSHIP
1.01 Formation
1.02 Contributions
1.03 Registration Declaration (for general partnerships)
1.03.01 Undertaking
1.03.02 Content of Registration Declaration
1.04 Power of Attorney
1.05 Registered Office
2.00 RULES GOVERNING PARTNERSHIP
2.01 Management of Partnership
2.02 Banking Matters
2.02.01 Bank Accounts
2.02.02 Authorized Signatories
2.02.03 Intermingling of Accounts
2.02.04 Loans
2.03 Corporate Records
2.03.01 Description
2.03.02 Register of Units
2.03.03 Other Documents
2.03.04 Access
2.04 Financial Statements
2.04.01 Appointment
2.04.02 Accounting Standards
2.04.03 Filing
2.05 By-Laws
2.06 Signatories for Contracts
3.00 RULES GOVERNING PARTNERS
3.01 Meetings
3.01.01 Annual Meeting
3.01.02 Special Meeting
3.01.03 Place of Meetings
3.01.04 Access
3.02 Proxies
3.02.01 General
3.02.02 Models
3.03 Calling of Meetings
3.03.01 Notice of Meeting
3.03.02 Waiver of Right to Notice
3.03.03 Incomplete Notice
3.03.04 Failure to Give Notice
3.04 Procedure at Meetings
3.04.01 Quorum
3.04.02 Adjournment
3.04.03 Second Adjournment
3.04.04 Ordinary Resolution
3.04.05 Voting Rights
3.04.06 Special Resolution
3.04.07 Filing of Proxies
3.04.08 Procedure
3.04.09 Written Resolution
3.04.10 Conflict of Interest
3.04.11 Authorization
3.04.12 Loans and Advances
3.04.13 Alienation or Encumbrance on Partnership's Property
3.05 Additional Capital Contributions
3.05.01 Special Resolution
3.05.02 Default by PARTNER
3.06 Capital Accounts
3.07 Encumbrance of Units
3.08 Expenses
3.09 Sharing of Income and Losses
3.09.01 PARTNERS' Share
a) Income
b) Losses
3.09.02 Distribution of Profits
3.10 Third-Party Liability
4.00 DUTIES AND OBLIGATIONS OF PARTNERS
4.01 Insurance
4.01.01 Insured Risks
4.01.02 Amount of Coverage
4.01.03 Insurer
4.01.04 Prior Notice
4.01.05 Additional Named Insured
4.01.06 Certificates of Insurance
4.01.07 Notice of Modification or Cancellation
4.02 Intellectual Property
4.02.01 Acknowledgement
4.02.02 Use
4.02.03 Notice
4.03 Indemnification
4.03.01 Definitions
4.03.02 Scope
4.03.03 Procedure
4.04 Non-Competition
4.04.01 Undertaking
a) Definition
b) Scope
4.04.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
4.04.03 Reasonableness of Clause
4.05 Non-Solicitation of Clients
4.05.01 Undertaking
a) Definitions
b) Scope
4.05.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
4.06 Further Assurances
5.00 WITHDRAWAL OF A PARTNER
5.01 Voluntary Withdrawal
5.01.01 Right to Withdraw
5.01.02 Offer
5.01.03 Notice
5.01.04 Refusal
5.02 Forced Withdrawal
5.02.01 Option to Purchase
5.02.02 Notice
5.02.03 Refusal
5.03 Terms of Payment
5.04 General Rule
5.05 Dispute ("Shotgun")
5.05.01 Notice
5.05.02 Time Limit to Accept
5.05.03 Deemed Acceptance
5.05.04 Formal Acceptance
5.05.05 Rejection of Offer
a) Deemed Purchase
b) Price and Terms
c) Proportion
5.06 Release and Discharge
6.00 DISABILITY OF A PARTNER
6.01 Definition
6.02 Application
6.03 Notice
6.04 Refusal
7.00 DEATH OF A PARTNER
7.01 Effect
7.02 Deemed Sale
7.03 Terms of Payment
7.03.01 General
7.03.02 Insurance Proceeds
a) Sufficient
b) Insufficient
7.03.03 Balance
7.03.04 Promissory Note
7.03.05 Collection Costs
7.03.06 Expiry of Term
7.03.07 Prepayment
7.03.08 Solidary Liability
7.04 Two Deaths
7.05 Protection of Estate
7.05.01 Indemnification
7.05.02 Release
7.06 Precedence
8.00 VALUATION OF UNITS
8.01 Initial Value
8.02 Current Value
8.02.01 Reassessment by PARTNERS
8.02.02 Dissent
8.03 Alternative Valuation
8.04 Reassessment by Tax Authorities
8.04.01 Liability
8.04.02 Options
9.00 FINANCING
9.01 Life Insurance Policies
9.01.01 Initial Policy
9.01.02 Additional Policies
9.02 Duties of PARTNERS
9.02.01 Payment of Premiums
9.02.02 Prohibition
9.02.03 Additional Protection
9.02.04 Changes to Insurance Coverage
9.02.05 Sale upon Death
a) No Insurance Proceeds
b) Ownership of Excess Amounts
9.03 Sale of Units
9.04 End of Agreement
10.00 DEPOSITARY
10.01 Appointment
10.02 Remuneration
10.03 Duties
10.03.01 Custody
10.03.02 Compliance
10.03.03 Liability
10.04 Termination of Agreement
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right of Other PARTNERS
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.02 Mediation
a) Process
b) Settlement
c) Arbitration [OR Legal Proceeding]
12.02.03 Arbitration Procedure (if V1 of 12.02.02 c) applies)
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontracts
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
12.03 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Without Notice
13.01.01 Events of Default
13.01.02 Exceptions
13.02 Liquidation of Partnership
13.02.01 Liquidator
13.02.02 Duties
a) Liquidation and Distribution
b) Powers
13.02.03 Remuneration
13.02.04 Obligations of Liquidator
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Term
15.02 Survival
16.00 SCOPE

SCHEDULE A – EXCERPT OF A RESOLUTION OF PARTNER A
SCHEDULE B – EXCERPT OF A RESOLUTION OF PARTNER B
SCHEDULE C – EXCERPT OF A RESOLUTION OF PARTNER C
SCHEDULE 0.01.06 – CONTRIBUTIONS
SCHEDULE 4.04.01 A – NON-COMPETITION - TERRITORY
SCHEDULE 4.05.01 A – NON-SOLICITATION - CLIENTS
SCHEDULE 4.05.01 B – NON-SOLICITATION - PRODUCTS AND SERVICES
SCHEDULE 8.01 – INITIAL VALUATION OF UNITS
SCHEDULE 8.02.01 – REASSESSMENT OF UNIT VALUATION
SCHEDULE 9.01.01 – LIFE INSURANCE POLICIES
SCHEDULE 10.01 – INTERVENTION OF DEPOSITARY