Sample Partnership Agreement Philippines

A partnership agreement is a legal document that outlines the terms and conditions of a partnership business. It defines the responsibilities, rights, and obligations of each partner and serves as a framework for the conduct of the partnership. In the Philippines, partnership agreements are regulated by the Civil Code and the Partnership Act.

If you are planning to enter into a partnership in the Philippines, it is recommended to draft a partnership agreement to protect your interests and avoid misunderstandings. Here is a sample partnership agreement that you can use as a guide:

1. Name and Business Purpose

The partnership agreement should start with the name of the partnership and its business purpose. This section should clearly state the nature of the partnership and the scope of its business activities.

2. Term of Partnership

The duration of the partnership should be specified in the agreement. This section should also indicate the conditions for the extension or termination of the partnership.

3. Capital Contribution

Each partner`s capital contribution should be clearly stated in the partnership agreement. This includes the amount of money, property, or services that each partner will contribute to the partnership.

4. Profit and Loss Sharing

The partnership agreement should specify how the profits and losses of the business will be shared among the partners. This includes the percentage of profits and losses that each partner will receive, as well as the frequency of distribution.

5. Management and Decision Making

The partnership agreement should outline the decision-making process of the partnership. This includes how decisions will be made, who has the authority to make decisions, and how disagreements will be resolved.

6. Roles and Responsibilities

The partnership agreement should clearly define the roles and responsibilities of each partner. This includes the duties of each partner, their level of authority, and the consequences of non-performance.

7. Withdrawal and Dissolution

The partnership agreement should specify the conditions for a partner`s withdrawal from the partnership. This includes the notice period, the procedure for a partner`s buyout, and the division of assets.

In case of dissolution, the partnership agreement should outline the liquidation process and the distribution of assets among the partners.

Final Thoughts

Drafting a partnership agreement is an essential step in establishing a successful business partnership in the Philippines. It helps to avoid future conflicts and misunderstandings between partners. If you are uncertain about the legal requirements or provisions of a partnership agreement, it is recommended to seek legal advice from a qualified attorney.