Free Idaho Partnership Agreement

Elements of A Partnership Agreement in Idaho

A Partnership Agreement is also known as:

    • General Partnership Agreement

    • Business Partnership Agreement

    • Partnership Contract

When entering into a business partnership, one of the most important documents you will prepare is a Partnership Agreement, a legally binding contract between partners that sets the guidelines that govern the partnership, the roles, relationships, and the responsibilities of the partners, and how the business will be run.

A business partnership can be made of two or more parties (individuals or organizations) who go into business together and agree to share in the profits or losses of the business. Unlike verbal or handshake agreements that are not enforceable, a Partnership Agreement is legally binding. It’s important that the Agreement include key information to ensure the success and survival of your partnership. Our Partnership Agreement template will guide you through the process.

Create a Partnership Agreement in Minutes

Use our free Idaho Partnership Agreement form to create, edit, download, email and print your legal document in minutes. Our free template contains all the sections necessary for the creation of a complete and legally binding Partnership Contract. The contract only requires the signatures of the partners to be enforceable. No notary required. To get started, fill in the information above, or read on the learn more.

The following are the basic sections of your Business Partnership Contract.

Financial Rights

The Partnership Contract will stipulate the financial rules, rights, and responsibilities of the partners, such as:

    • The allocation of profits and losses: is the distribution of the profits and losses based on a fixed percentage agreed by all partners beforehand, an equal share where all partners get the same profits regardless of their capital contributions, or are the partners’ share of profits and losses proportional to their capital contributions?

    • Capital draws: when are partners allowed to draw from the partnership, and how much can they draw at a time?

    • Do Managing Partners get a bigger share of the profits given their greater involvement in the day-to-day operations of the business?

    • Are partners required to give capital contributions or loans to cover financial shortfalls?

Partner Authority

Partner authority pertains to the legal authority of a partner to bind the partnership and the partners personally, to both financial and legal obligations. However, partner authority is limited in that partners cannot act on their own interests and only their own discretion in such ways that would be detrimental to the partnership. This section details what a partner can and cannot do on behalf of the partnership and the other partners.

Partner Termination/Buyout

This section addresses such things as:

    • When and how a partner can get out of the partnership

    • Do the remaining partners have any rights to buy out a partner withdrawing their stake in the partnership? What is the buyout price?

    • Can partners assign their interests to third parties? Should the other partners be consulted on this?

    • Will the partnership admit new partners in the future? If so, what’s the process, and what are the terms of acceptance?

    • Which conditions force existing partners to terminate a partner’s stake?

Competition and Partner Involvement

The Partnership Agreement also specifies the activities and the time each partner is expected to put into the business. (This is in addition to any capital contributions.) The contract will also state that the partners are not permitted to engage in business activities that compete with the partnership business directly.

Dispute Resolution

The Partnership Agreement must include a mediation clause to compel the partners to work with a mediator to resolve disputes that might threaten the continuity of the partnership. This saves the partnership money and trouble of having to resolve through the court system.

Dissolution of Partnership

There are several reasons for dissolving a partnership. This section will spell out these reasons, such as when a goal has been attained, when a project is completed, death of a partner or bankruptcy.

If you are entering into a business partnership in Twin Falls, Boise, Idaho Falls, Meridian, Nampa, Pocatello, Moscow, Eagle, or any other city in Idaho, you can use our free Partnership Agreement form above.