When entering into a partnership with another business or organization, it is important to have a clear understanding of the terms and expectations. This is where a partnership memorandum of agreement (MOA) comes in handy. A partnership MOA is a legal document that outlines the terms and conditions governing a partnership between two or more parties. In the Philippines, a partnership MOA is an essential document that can help minimize misunderstandings and disputes between business partners.
Below is a sample partnership MOA that can serve as a guide when drafting your own agreement:
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement (MOA) is entered into by and between [Name of Partner 1], located at [Address of Partner 1], and [Name of Partner 2], located at [Address of Partner 2], collectively referred to as the “Partners.”
WHEREAS, the Partners desire to establish a partnership for the purpose of [Purpose of Partnership];
NOW, THEREFORE, the Partners agree as follows:
1. Name of Partnership. The name of the partnership shall be [Name of Partnership].
2. Term of Partnership. The partnership shall commence on [Date of Commencement] and shall continue until [Date of Termination].
3. Purpose of Partnership. The purpose of the partnership shall be [Purpose of Partnership].
4. Financial Contributions. The partners agree to contribute the following amounts to the partnership:
– Partner 1 shall contribute [Amount] in cash or in kind
– Partner 2 shall contribute [Amount] in cash or in kind
5. Division of Profits and Losses. The profits and losses of the partnership shall be divided equally between the Partners.
6. Management of Partnership. The Partners shall have joint management and control of the partnership. Decisions shall be made by mutual agreement. In the event of a disagreement, a third-party mediator shall be consulted to resolve the issue.
7. Confidentiality. The Partners shall maintain the confidentiality of all information pertaining to the partnership, including but not limited to trade secrets, business plans, and financial information.
8. Termination. The partnership may be terminated by mutual agreement or by either Partner giving written notice to the other at least [Number of Days] days prior to the proposed termination date.
9. Dissolution. In the event of termination, all assets of the partnership shall be divided equally between the Partners.
10. Governing Law. The terms and conditions of this MOA shall be governed by and construed in accordance with the laws of the Philippines.
IN WITNESS WHEREOF, the Partners have executed this MOA as of the date first written above.
[Name of Partner 1] [Name of Partner 2]
[Printed Name] [Printed Name]
When drafting a partnership MOA, it is important to consult with a lawyer to ensure that the agreement complies with relevant laws and regulations. The above sample MOA can serve as a starting point, but it is always advisable to customize the agreement according to the specific needs and circumstances of your partnership.
In conclusion, a partnership MOA is an essential document for any business partnership in the Philippines. It can help establish clear expectations and prevent misunderstandings and disputes between partners. By taking the time to draft a thorough and detailed MOA, you can set your partnership up for success.