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Simple Partnership Agreement for Germany

Simple Partnership Agreement Template for Germany

A Simple Partnership Agreement (Gesellschaft bürgerlichen Rechts - GbR) under German law is a fundamental contract that establishes a civil law partnership between two or more parties. This agreement, governed by the German Civil Code (BGB), outlines the essential terms of cooperation, including capital contributions, profit sharing, management rights, and decision-making processes. It provides a flexible legal framework suitable for professional services, small businesses, and joint ventures, while ensuring compliance with German partnership law requirements and tax regulations.

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What is a Simple Partnership Agreement?

The Simple Partnership Agreement (Gesellschaft bürgerlichen Rechts - GbR) is a foundational document used in Germany when two or more parties wish to establish a basic partnership structure without creating a more complex corporate entity. This agreement is particularly suitable for professional services, small business ventures, or project-specific collaborations. It should be used when partners want to maintain flexibility while having a clear legal framework for their cooperation. The document addresses essential aspects such as capital contributions, profit and loss sharing, management responsibilities, and decision-making processes, all within the context of German civil law. It's important to note that this agreement creates a partnership structure with joint and several liability among partners, making it crucial to carefully consider and document all terms of the cooperation.

What sections should be included in a Simple Partnership Agreement?

1. Parties: Identification and details of all partners entering into the agreement

2. Background: Context of the partnership formation and partners' intention to cooperate

3. Definitions: Key terms used throughout the agreement

4. Partnership Formation and Purpose: Declaration of partnership formation, business purpose, and main objectives

5. Duration: Term of the partnership (fixed term or indefinite)

6. Capital Contributions: Initial and subsequent capital contributions by partners

7. Profit and Loss Sharing: Distribution of profits and allocation of losses among partners

8. Management and Decision Making: Partnership management structure and voting rights

9. Partners' Rights and Obligations: Core responsibilities and rights of all partners

10. Banking and Financial Records: Management of partnership finances and accounting requirements

11. Admission of New Partners: Process and conditions for admitting new partners

12. Withdrawal and Retirement: Procedures for partner withdrawal or retirement

13. Termination: Circumstances and procedures for partnership termination

14. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Simple Partnership Agreement?

1. Non-Competition: Restrictions on partners' competing activities, used when partners have other business interests

2. Intellectual Property Rights: IP ownership and usage rights, important for partnerships involving creative or technical work

3. Insurance: Required insurance coverage, relevant for high-risk activities or regulated sectors

4. Confidentiality: Protection of partnership's confidential information, important for partnerships with sensitive information

5. Alternative Dispute Resolution: Mediation or arbitration procedures, useful for partners wanting to avoid court proceedings

6. Force Majeure: Provisions for extraordinary events, relevant in uncertain business environments

What schedules should be included in a Simple Partnership Agreement?

1. Schedule 1 - Initial Capital Contributions: Detailed list of each partner's initial capital contributions (monetary and non-monetary)

2. Schedule 2 - Business Plan: Initial business plan and strategy of the partnership

3. Schedule 3 - Partner Contact Details: Complete contact information for all partners

4. Schedule 4 - Asset Register: List of partnership assets and their ownership status

5. Schedule 5 - Special Voting Rights: Any special voting or veto rights agreed among partners

6. Appendix A - Partnership Bank Account Details: Banking information and authorized signatories

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use

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