Partnership Contract Guidelines

To form a partnership for this project you must type out a contract addressing all of the points below.  Each partner must sign and date the contract. 

Purpose of the partnership- This ensures that the partners will not deviate from the main purpose of the business.

Financial contributions of each partner- Include how much capital each partner will contribute. This should not be just limited to money contributions but should include all non-cash contributions as well (labor, materials, equipment, etc.)

Profit and loss allocation- Most partnerships split the profits and losses equally but this is not always true. This should be put in writing so if discrepancies ever arise there is proof about who gets how much.

Responsibility of each partner- This should discuss each partner's duties, how the duties will be divided up, and how decisions will be made. Basically it will say who has what authority and how far that authority goes.

Accounting and Finance

            Manages income and expenses and maintains financial records

Operations

            Maintains daily activities and resources of the business

Management

            Develops implements, and evaluates business plans

Production

            Creates or obtains products and services

Marketing

Promotion activities and materials

Sales

Pricing

Market Research

Product Development

Brand Management

Distribution

Conflict resolution- No matter the business or how well planned out things are, arguments can arise that cannot be solved. Rather than using legal action you could try mediation.

A course of action to take if either party wants to dissolve the partnership- If a partner decides to leave the business what course of action will take place?

Duration of partnership- When will the partnership end?

Date and Signatures of each party.