Contract

CONTRACT 1

Institution Affiliation

In a business partnership, it is essential to havea set of guidelines that will guide the operations the actions ofeach of the members. In the case of the proposed online book exchangebusiness plan, seven primary factors will be included in thepartnership contracts (Blount, 2015). These are aimed at ensuringthat all members are given an equal opportunity to the operations ofthe business organization.

  • The business partnership is owned1 by:

1. ………………………………………………….

2. ………………………………………………….

3. …………………………………………………..

4………………………………………………………

  • The initial partners’ contributions2 are as follows:

Name % Contribution

1. …………………………………………. ………………

2. ………………………………………… ……………….

3. ………………………………………… ………………

4. ………………………………………… ……………….

  • A decision made by any of the partners is binding to all. Additionally, the decision making process requires the input of all the members. No decision shall be made without consulting all the partners3.

  • All the partners will be assigned tasks periodically. After some time, they will switch their responsibilities4. The workload is to be shared equally among all the members.

  • Compensation for the partners will be based on the percentage of ownership5. Additionally, the amount of losses will be limited to the amount of contribution to each partner.

  • In case of any conflict arising, a meeting shall be convened and a compromise sought. Failure to reach an agreement would lead to a vote by the partners. A resolution by the majority will be binding6.

  • Dissolution of the partnership may be caused by death, bankruptcy and voluntary withdrawal of more than 50% of the partners. Assets are distributed based on the initial contribution7.

References

Blount, S (2015). 7 Essential Components ofa Strong Partnership Agreement. Blount Law

1 This part will highlight the percentage of the firm owned by each of the partners. It is mostly determined by the initial contributions of the members.

2 Contributions determine the initial contributions made by all the partners

3 The level of authority wielded by the partnership highlights the power of any of the members to make a binding decision on behalf of others

4The workload of each partner will highlight the roles and responsibilities of each member of the group as well as the number of hours they are expected to work in the company

5 Compensation determines the amount to be paid to each of the members as a salary or allowances

6 A provision in conflict resolution is included in the contract and highlights the process of solving disputes as well as the consequences of not coming to a compromise

7 The process of dissolution includes the steps to be taken in instances where one of the members decides to quit the partnership