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.

RECITALS
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Contribution(s)
0.01.05 Encumber / Encumbrance
0.01.06 Expenses
0.01.07 Financial Year
0.01.08 Intellectual Property
0.01.09 Legal Representatives
0.01.10 Ordinary Resolution
0.01.11 PARTNERS
0.01.12 Partnership
0.01.13 Prime Rate
0.01.14 Registration Declaration (for general partnerships)
0.01.15 Special Resolution
0.01.16 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 Limits
0.05.04 Accounting Standards
1.00 FORMATION OF PARTNERSHIP
1.01 Formation
1.02 Contributions
1.03 Registration Declaration (for general partnerships)
1.04 Registration Renewal
1.05 Registered Office
2.00 RULES GOVERNING PARTNERSHIP
2.01 Management of Partnership
2.02 Loans
2.03 Corporate Records
2.04 Financial Statements
2.04.01 Appointment
2.04.02 Filing
2.05 By-Laws
3.00 RULES GOVERNING PARTNERS
3.01 Meetings
3.01.01 Annual Meeting
3.01.02 Special Meeting
3.01.03 Place of Meetings
3.02 Calling of Meetings
3.03 Procedure at Meetings
3.03.01 Quorum
3.03.02 Ordinary Resolution
3.03.03 Voting Rights
3.03.04 Special Resolution
3.03.05 Written Resolution
3.03.06 Conflict of Interest
3.04 Capital Accounts
3.05 Encumbrance of Units
3.06 Expenses
3.07 Sharing of Income and Losses
3.07.01 PARTNERS' Share
a) Income
b) Losses
3.07.02 Distribution of Profits
3.08 Third-Party Liability
4.00 DUTIES AND OBLIGATIONS OF PARTNERS
4.01 Insurance
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
6.00 DEATH OF A PARTNER
6.01 Effect
6.02 Deemed Sale
6.03 Terms of Payment
6.03.01 General
6.03.02 Insurance Proceeds
a) Sufficient
b) Insufficient
6.03.03 Balance
6.03.04 Promissory Note
6.03.05 Collection Costs
6.03.06 Solidary Liability
6.04 Protection of Estate
7.00 VALUATION OF UNITS
7.01 Initial Value
7.02 Current Value
7.02.01 Reassessment by PARTNERS
7.02.02 Dissent
7.03 Alternative Valuation
7.04 Reassessment by Tax Authorities
8.00 FINANCING
8.01 Life Insurance Policies
8.02 Duties of PARTNERS
8.02.01 Payment of Premiums
8.02.02 Prohibition
8.02.03 Additional Protection
8.02.04 Sale upon Death
a) No Insurance Proceeds
b) Ownership of Excess Amounts
8.03 Sale of Units
8.04 End of Agreement
9.00 SPECIAL PROVISIONS
9.01 Assignment
9.01.01 Prohibition
9.01.02 Effect of Breach
9.01.03 Exception
10.00 GENERAL PROVISIONS
10.01 Notice
10.02 Dispute Resolution
10.02.01 Written Notice and Meeting
10.02.02 Mediation
10.02.03 Arbitration [OR Legal Proceeding]
10.03 Choice of Forum
10.04 Amendment
10.05 No Waiver
10.06 Language
11.00 TERMINATION
11.01 Without Notice
11.01.01 Events of Default
11.01.02 Exceptions
11.02 Liquidation of Partnership
11.02.01 Liquidator
11.02.02 Duties
11.02.03 Remuneration
11.02.04 Obligations of Liquidator
12.00 EFFECTIVE DATE
13.00 DURATION
13.01 Term
13.02 Survival
14.00 SCOPE

SCHEDULE 0.01.04 – 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 7.01 – INITIAL VALUATION OF UNITS
SCHEDULE 7.02.01 – REASSESSMENT OF UNIT VALUATION
SCHEDULE 8.01 – LIFE INSURANCE POLICIES