50 50 Partnership Agreement Template for Pakistan

The 50-50 Partnership Agreement is a crucial legal document used in Pakistan when two parties wish to establish a business venture with equal ownership and control. This document is essential for partnerships registered under the Partnership Act 1932 and should be used when partners want to ensure equal rights, responsibilities, and profit sharing in their business relationship. The agreement comprehensively covers capital contributions, management rights, profit distribution, dispute resolution, and partnership dissolution procedures. It's particularly important in the Pakistani business context where formal documentation of partnership terms is crucial for legal compliance and dispute prevention. The document must align with Pakistani partnership laws while providing clear guidelines for the equal partnership structure.

1. Parties: Identification and details of both partners entering into the 50-50 partnership

2. Background: Context of the partnership formation and brief description of the business purpose

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Partnership Formation: Declaration of partnership formation, business name, and commencement date

5. Capital Contribution: Details of equal capital contributions from both partners and procedures for additional capital injection

6. Profit and Loss Sharing: Equal (50-50) distribution mechanism for profits and losses

7. Management Rights and Duties: Equal management rights, decision-making process, and partners' responsibilities

8. Banking and Financial Matters: Banking arrangements, signing authorities, and financial management procedures

9. Books and Records: Requirements for maintaining partnership accounts, records, and access rights

10. Partner Restrictions: Non-compete and confidentiality obligations of partners

11. Addition and Retirement of Partners: Procedures for adding new partners or handling partner retirement

12. Death or Incapacity: Procedures in case of death or incapacity of either partner

13. Dissolution and Termination: Conditions and procedures for partnership dissolution and asset distribution

14. Dispute Resolution: Mechanism for resolving disputes between partners

15. Governing Law: Specification of Pakistani law as governing law and jurisdiction