Partnership Agreement‐Silent Partnership 
 
 
 
On this ____ of ___________, 20____, the undersigned individuals, hereinafter referred to as the 
"Partners," entered into the following Partnership Agreement, hereinafter referred to as the 
"Agreement."  
 
WHEREAS the Partners desire to form a partnership; 
 
NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements set 
forth in this Agreement and other good and valuable consideration, the receipt and sufficiency 
of which are hereby acknowledged by all parties, the Partners hereby mutually agree as follows:  
 
I. 
Partnership Name, Place, and Business 
 
The name of the Partnership shall be “NAME OF YOUR BUSINESS”, hereinafter referred to as the 
"Partnership" and its purpose shall be to engage in and conduct business as set out specifically in 
Exhibit "A." The principal place of business of the Partnership shall be “YOUR BUSINESS ADDRESS” 
and or any other places as may be agreed upon by the Partners.  
 
II. 
Term 
 
The Partnership shall begin on ____ of ___________, 20____, and shall continue thereafter until 
lawfully dissolved.  
 
III. 
Capital Accounts 
 
The Partners shall make initial capital contributions as set out in Exhibit "B." No Partner's 
contribution to the capital of the Partnership shall bear interest in his or her favor. The capital of the 
Partnership and all other monies, documents of title, securities, and commercial papers shall be 
deposited in the name of the Partnership in the bank or financial institution known as 
_____________________ and located in _________________ in the State of __________________.  
 
IV. 
Profit and Loss 
 
Except as otherwise provided in this Agreement, the profits and losses of the Partnership and all 
items of income, gain, loss, deduction, or credit shall be shared equally by the Partners. Profits and 
losses shall be computed in accordance with generally accepted accounting principles, consistently 
applied.  
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accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
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discuss your specific situation and obtain the appropriate legal or other expert advice.
 

V. 
Banking and Records 
 
Two accounts, a separate capital account and a separate income account, shall be maintained for 
each Partner. Each Partner's capital contribution, as set out in Exhibit "B," shall be maintained in such 
Partner's capital account. Except as provided in this Agreement, neither Partner shall withdraw any 
part of his or her capital account. Each Partner's income shall be deposited in his or her income 
account and such Partner's share of profit or loss shall be credited to, or debited from, such account. 
In the event that the funds in a Partner's income account are insufficient to satisfy such Partner's 
share of Partnership losses, the insufficiency shall be debited from that Partner's capital account.  
 
The Partnership books and records shall be maintained at the principal office of the Partnership and 
each Partner shall have access to the books and records at all reasonable times. The Partnership 
books shall be maintained on a fiscal year beginning the ____ of ___________, 20____ and ending 
the ____ of ___________, 20____. 
 
VI. 
Time, Salary, and Draw Rights 
 
Each Partner shall devote such time and attention to the business and affairs of the Partnership as 
shall from time to time be agreed upon by the Partners. No Partner shall be entitled to any salary or 
to any compensation for services rendered to the Partnership or to another Partner. At any time, any 
Partner may withdraw the balance of his or her income account.  
 
VII. 
Silent Partner 
 
The parties hereby agree that “NAME OF SILENT PARTNER” shall be a “silent partner” in the 
Partnership. “NAME OF SILENT PARTNER” shall not be active in the business of the Partnership and is 
not restricted from engaging in any other business or from entering into any other partnerships. 
Furthermore, the “silent partner” shall not be personally liable for any debts or other obligations of 
the Partnership.  
 
VIII. 
Restrictions on Transfer of Partnership Interests 
 
No Partner shall have any right to sell, assign, transfer, mortgage, encumber, or otherwise dispose of 
any part of such Partner's interest in the Partnership.  
 
IX. 
Termination of Partnership 
 
This Partnership shall terminate immediately upon the death, incompetency, withdrawal, or 
bankruptcy of any Partner. Upon dissolution of the Partnership, the Partners shall wind‐up its 
Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for the
accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional advisor to
discuss your specific situation and obtain the appropriate legal or other expert advice.
 

business by selling all Partnership assets, paying all Partnership liabilities, and distributing the 
balance, if any, to the Partners; or, in the case of the death or incompetence of a Partner, to such 
Partner's representative, in equal shares. In addition, the profits and/or losses of the Partnership 
shall be calculated and credited to, or charged against, each Partner's accounts as set forth in 
paragraph V above.  
 
X. 
Governing Law 
 
This Agreement shall be interpreted under and governed by the laws of the State of 
_____________________________. 
 
XI. 
Dispute Resolution 
 
The Partners hereby agree that any dispute, controversy, or claim arising out of this Agreement shall 
be referred first to a mutually agreed‐upon mediator for mediation of such dispute. The cost of the 
mediation will be shared equally by all Partners. 
 
In the event any such dispute is not resolved within ten days following the first day of mediation, 
such dispute shall be settled by binding arbitration in accordance with the rules of the American 
Arbitration Association, and judgment upon any award rendered may be entered in any court having 
jurisdiction.  
 
Signed and executed this ____ of ___________, 20____. 
 
 
_____________________________________    __________________________________ 
Partner’s Signature         Date      Partner’s Signature    Date 
 
_____________________________________    __________________________________ 
Print Name              Print Name 
 
 

Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for the
accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional advisor to
discuss your specific situation and obtain the appropriate legal or other expert advice.
 

Partnership Agreement‐Silent Partnership 

 
Exhibit “A” 
 
 
The purpose of the Partnership shall be to conduct the following described business: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for the
accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional advisor to
discuss your specific situation and obtain the appropriate legal or other expert advice.
 

Partnership Agreement‐Silent Partnership 

 
Exhibit “B” 
 
 
Partner Name & Address:            Capital Contribution: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for the
accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional advisor to
discuss your specific situation and obtain the appropriate legal or other expert advice.
 

Partnership Agreement‐Silent Partnership 

 
Partner Non‐Disclosure Agreement 
 
 
The undersigned, a partner in “NAME OF YOUR BUSINESS”, hereby promises to keep the 
Partnership's business secrets confidential and not to disclose such secrets to any third party during 
and/or after the term of the Partnership Agreement, a copy of which is attached hereto.  
 
The undersigned understands and accepts that, if he/she violates this Non‐Disclosure Agreement for 
any reason, the partnership may be severed and/or dissolved without affecting the validity or 
enforceability of any other provisions of  
the Partnership Agreement.  
 
Signed this _____ of _____________, 20_____. 
 
 
_____________________________________    __________________________________ 
Partner’s Signature         Date      Partner’s Signature    Date 
 
_____________________________________    __________________________________ 
Print Name              Print Name 
 
 
 
 

Sample contract from www.reicircle.com. REI Circle does not warrant or assume any liability or responsibility, legal or otherwise, for the
accuracy, completeness, or usefulness of any content herein. It is provided with the understanding that this contract is not to be used for
purposes of rendering legal, accounting, or other professional services. Please consult your attorney or other professional advisor to
discuss your specific situation and obtain the appropriate legal or other expert advice.