The Partnership Contract is a crucial document in German business law, used when two or more parties wish to establish a formal business partnership. This contract type is essential for creating various forms of partnerships under German law, including civil law partnerships (GbR), general commercial partnerships (OHG), and limited partnerships (KG). It defines the foundational elements of the partnership relationship, including capital contributions, profit-sharing arrangements, management responsibilities, and decision-making processes. The document must comply with German Civil Code (BGB) and Commercial Code (HGB) requirements, particularly sections 705-740 of the BGB for civil law partnerships. This agreement is fundamental for protecting partners' interests, establishing clear operational guidelines, and providing a framework for resolving potential disputes. It's particularly important as German partnerships often involve unlimited personal liability for at least some partners, making clear contractual terms essential for risk management.
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1. Parties: Identification and details of all partners entering the agreement
2. Background: Context of the partnership formation and partners' intention to collaborate
3. Definitions: Key terms used throughout the agreement
4. Partnership Name and Purpose: Official name of the partnership and detailed description of its business purpose
5. Duration: Term of the partnership (fixed term or indefinite)
6. Capital Contributions: Initial and ongoing capital contributions of each partner
7. Profit and Loss Sharing: Distribution of profits and losses among partners
8. Management and Decision Making: Partnership management structure and voting rights
9. Partner Rights and Obligations: Core responsibilities and rights of each partner
10. Accounting and Financial Matters: Financial reporting, bookkeeping, and fiscal year definitions
11. Banking and Financial Authority: Banking arrangements and signing authorities
12. Transfer of Partnership Interests: Rules regarding transfer of partnership shares
13. Admission of New Partners: Process and conditions for admitting new partners
14. Withdrawal and Retirement: Procedures for partner withdrawal or retirement
15. Termination and Dissolution: Conditions and procedures for partnership termination
16. Governing Law: Confirmation of German law application and jurisdiction
17. Notices: Communication procedures between partners
18. General Provisions: Miscellaneous legal provisions including severability
1. Non-Competition: Restrictions on partners' involvement in competing businesses
2. Intellectual Property Rights: Ownership and usage of IP created during partnership
3. Death of Partner: Procedures in case of partner's death, particularly relevant for family businesses
4. Dispute Resolution: Alternative dispute resolution procedures before court litigation
5. Insurance: Required insurance coverage for the partnership
6. Employee Matters: Guidelines for hiring and managing employees
7. Partnership Property: Specific provisions for partnership-owned property
8. Environmental Compliance: Environmental obligations, relevant for industrial partnerships
9. Digital Assets and Data Protection: Management of digital assets and GDPR compliance
1. Schedule 1 - Initial Capital Contributions: Detailed list of each partner's initial capital contributions
2. Schedule 2 - Profit Sharing Ratios: Detailed breakdown of profit and loss allocation
3. Schedule 3 - Management Structure: Organizational chart and management responsibilities
4. Schedule 4 - Business Plan: Initial business plan and strategic objectives
5. Schedule 5 - Property Inventory: List of partnership property and assets
6. Appendix A - Partner Contact Details: Complete contact information for all partners
7. Appendix B - Banking Arrangements: Details of partnership bank accounts and authorized signatories
8. Appendix C - Required Licenses: Copies of necessary business licenses and permits
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