How to guide on drafting a partnership agreement in Ontario

Here is a general guide on drafting a partnership agreement in Ontario:

  1. 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.
  2. Partnership Structure: Describe the structure of the partnership, including the name, address, and percentage of ownership of each partner.
  3. 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.
  4. 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.
  5. 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.
  6. Partner Withdrawal or Death: Discuss how a partner may withdraw from the partnership or what will happen if a partner dies or becomes disabled.
  7. 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.
  8. Dissolution and Termination: Explain how the partnership will be dissolved and how assets will be distributed if the partnership is terminated.
  9. Governing Law: State which law will govern the partnership agreement.
  10. 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.

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