Here is a general guide on drafting a partnership agreement in Ontario:
- Introduction: Start with an introduction that sets out the name of the partnership, the business purpose of the partnership, and the effective date of the agreement.
- Partnership Structure: Describe the structure of the partnership, including the name, address, and percentage of ownership of each partner.
- Capital Contributions: Explain how much money or other assets each partner will contribute to the partnership and how and when the contributions will be made.
- Profit and Loss Sharing: Describe how profits and losses will be allocated among the partners and whether profits will be distributed regularly or reinvested in the business.
- Decision Making: Outline how decisions will be made and what type of decisions require unanimous agreement among the partners. This section should also include information about meetings, voting, and dispute resolution.
- Partner Withdrawal or Death: Discuss how a partner may withdraw from the partnership or what will happen if a partner dies or becomes disabled.
- Confidentiality and Non-Compete: Include provisions to protect the partnership’s confidential information and trade secrets, as well as any non-compete clauses that restrict a partner’s ability to compete with the partnership after leaving.
- Dissolution and Termination: Explain how the partnership will be dissolved and how assets will be distributed if the partnership is terminated.
- Governing Law: State which law will govern the partnership agreement.
- Signatures: Have all partners sign and date the partnership agreement.
It is recommended that you seek the assistance of a lawyer to ensure that the partnership agreement is properly drafted and meets all legal requirements in Ontario. If you have any questions, please contact us at info@falconlawyers.ca or 1-877-892-7778.
