Partnership Agreement
Suppose a home improvement business, Makle Construction, which is located in California, would like to
be the partner of Capitol Home Improvement, LLC. You are responsible for preparing a draft of the
agreement. You may see a sample partnering agreement at:
Edit this agreement and customize it to fit the needs of Makle Construction and Capitol Home
Improvement, LLC.
Assignment Expectations
1.Answer questions with clarity.
2.Show depth and breadth to enhance the quality of your paper.
3.Search in our library to find some papers/articles to support your argument and show them in the
reference list.
Turn in a paper of at least 2 pages (draft of agreement) and submit by the Module 4 deadline
PARTNERSHIP AGREEMENT 2
Partnership Agreement
This is the Partnership Agreement made on 29th /08/2014 between Makle Construction and
Capitol Home Improvement, LLC.
Name and Business
The parties form an agreement under the name of MAKHI to provide renovation of doors and
window glasses of various companies, and at the same time provide painting solutions.
Term
The partnership shall commence on 10th/10/2014 and shall go on until concluded.
Capital
The capital shall be contributed in check or cash by the partners as follows:
A disconnect capital account shall be kept for each partner.
None of them will withdraw any part of their capital account.
Upon a demand by one of the partners, the accounts of the partners will be maintained in
the fractions in which the partners share in the losses and profits in the partnership.
Profit and Loss
The profits and losses of the partnership shall be divided into the proportion of their contribution.
Partnership profits and losses shall be credited to the separate income of their accounts. If a
PARTNERSHIP AGREEMENT 3
partner lacks credit balance in the income account, losses will be charged to their account (Meng,
2012).
Salaries and Withdrawals
None of the partners receives a salary for services rendered to them. Each partner may withdraw
the credit balance in their income accounts.
Interest
There will be no interest paid on initial or subsequent contribution.
Management Duties and Restrictions
The partners hold equal rights in the management. Therefore, without the right consent of the
other party, none is allowed to borrow, lend money, or enter to some agreements (Mugisha,
2013.
Banking
The funds shall be deposited using the contact names’ name. Therefore, all withdrawals are made
after checks signed by both partners.
Books
The partnership books shall be kept and maintained at the prime office of the partnership; the
partners have access them at any time. The books shall be balanced and closed on each fiscal
year (Mugisha, 2013).
PARTNERSHIP AGREEMENT 4
Voluntary Termination
The partnership can be terminated at any time given time by agreement of the partners. The
partner’s name shall be sold with some of the assets of the agreement. The assets shall be
distributed as follows using the orders as agreed by the partnership.
Death
Upon the death one of the partner, the surviving partner will have all the right either to buy the
interest of the decedent in the partnership contract or to liquidate and terminate the partnership
dealing. If the existing partner decides to purchase the interest, he shall serve a clear notice in
writing form of such decision (Mugisha, 2013). This should take place within four months after
the death of the other partner. The following should happen;
a) If the existing partner decides to purchase the interest of the dead one in the partnership, the
purchase cost shall be equal to the decedent’s account as at the time of his death and his income
as at the end of the previous fiscal year.
b) Unless, otherwise stated, the procedure to distribution and of the partnership business
remains the same as stated in the voluntary termination.
Arbitration
Any claim or controversy relating to this Agreement, or a breach hereof, shall be handled by
arbitration in agreement with the rules thereof. The parties have signed this Agreement herein.
Executed on 29th/08/2014 at in California, U.S.A
PARTNERSHIP AGREEMENT 5
Contractor 1:
Signature:………………………………………Date:………………………………….
Contractor 2:
Signature:………………………………………Date:……………………………………
PARTNERSHIP AGREEMENT 6
References
Meng, X. (2012). The effect of relationship management on project performance in construction.
International Journal Of Project Management, 30188-198.
Mugisha, S. (2013). Utility Benchmarking and Regulation in Developing Countries : Practical
Application of Performance Monitoring and Incentives
