As businesses grow and expand, it`s common for owners to seek out partnerships with other companies to achieve strategic goals. However, entering into a partnership can be a complex process that requires careful planning and documentation.
One key document that should be created when forming a partnership is a memorandum of agreement (MOA). This document outlines the terms and conditions that will govern the partnership, such as each partner`s responsibilities, the duration of the partnership, and the division of profits and losses.
To help you get started, we`ve put together a sample MOA for business partners. Keep in mind that this document should be tailored to your specific partnership and reviewed by legal counsel before it is executed.
MEMORANDUM OF AGREEMENT FOR BUSINESS PARTNERS
This Memorandum of Agreement (“MOA”) is made on __________ (date) by and between __________ (Partner 1) and __________ (Partner 2) (collectively referred to as the “Partners”).
WHEREAS, the Partners desire to engage in a business partnership for the purpose of achieving specific strategic goals;
WHEREAS, the Partners agree to collaborate on business activities and share profits and losses in accordance with the terms of this MOA;
NOW, THEREFORE, the Partners agree as follows:
The Partners agree to collaborate on the following business activities: __________ (insert specific activities).
The partnership shall commence on __________ (date) and shall continue until __________ (insert end date or termination event).
3. Responsibilities of the Partners
a. Partner 1 shall be responsible for __________ (insert specific responsibilities).
b. Partner 2 shall be responsible for __________ (insert specific responsibilities).
c. The Partners shall collaborate on __________ (insert specific responsibilities).
4. Profits and Losses
a. The Partners shall share profits and losses in the following manner: __________ (insert specific division of profits and losses).
b. The Partners shall maintain accurate records of all financial transactions related to the partnership.
This MOA may be terminated by mutual agreement of the Partners, or if one Partner breaches a material term of this MOA.
6. Governing Law
This MOA shall be governed by the laws of __________ (insert governing law).
IN WITNESS WHEREOF, the Partners have executed this MOA as of the date first written above.
Partner 1: __________
Partner 2: __________
Creating a memorandum of agreement for business partners is an essential step in forming a successful partnership. By clearly outlining the responsibilities of each partner and the terms of the partnership, you can avoid misunderstandings and disputes down the line.
If you need assistance drafting an MOA or any other legal document, consult with qualified legal counsel to ensure that your interests are protected and your partnership is built on a solid foundation.