PARTNERSHIP DEED

This Agreement is made at Lahore on this …………. On July, 2019 by and between
The DEED OF PARTNERSHIP is being made among;
PARTY A PARTY B
Mr. ABC Mr. XYZ
NIC NIC
S/o S/o
Address Address

PARTY C
Mr. PQR
NIC
S/o
Address

The Agreement will come into effect the day it is signed by all three parties.

Relationship and Scope of Partnership:

All three parties individually, agree to act and bind themselves as partners of other two parties
in the business partnership being established under this contract. It is expressly agreed that any
party shall not undertake any activity beyond the scope of this partnership which may have an
adverse effect on other businesses of other parties. The areas covered under the above territory
may be enhanced or reduced with mutual consent of parties subject to certain limitations
enumerated in the ensuing paragraphs.
WHEREAS all the above mentioned parties have agreed to run the business of (………………) with
the name and style of (……………………………) under the terms and conditions mentioned
hereunder:-

TERMS & CONDITIONS

1. That the business will be run under the name and style of (Friends Corner)
2. That the principal place of said business is; ……………………………
3. That the partnership will be “PARTNERSHIP AT WILL” by all three parties
4. That a joined bank account of the business will be opened in any scheduled bank of Pakistan and
may be operated by Managing Partners, and would be signed by all three parties
5. No bank transaction can be made without joined signatures of any account holders
6. Arqam shall be the Managing Partner of the firm, in order to operate the accounts
7. That all three parties would invest equal amount of PKR470,000/- (Pak Rupee Five Hundred
Thousand Only) ……………. as working capital
8. That irrespective of the capital investment of the partners, profit and loss of the firm shall be
allocated among the partners according the ratio 33.33% for three parties
9. That the profit and loss shall be divided among the parties at the end of the year, which will be
starting from August 1, 2019 and would end 30th of June of every year
10. That all the parties shall have the right to inspect and check all the books of accounts maintained
by the business
11. All the parties shall work with full interest, honestly, diligently and faithfully. None shall act in
any way detrimental to the interest of the firm
12. That on terms where the present “DEED” is silent, the provisions of the Partnership Act, 1932
shall apply to this Partnership Deed
13. That the marketing and business plan shall be mutually agreed between both parties
14. That the basic principle shall be added as to how to operate and what shall be direction
of the business
15. That the operational autonomy shall remain with all three parties under guidelines of
this DEED
16. That investment in the partnership business shall be done by all three parties equally
17. That additional investment and profit & loss ratio shall be discussed on case to case basis
18. That three parties shall draw a monthly 60% from profit of sales- as day to day personal
expenses on the last day of every month, that every party would get 20% each share and
the rest of 40% will be submitted in bank account for use of business firm
19. That balance sheet shall be shared and evaluated on monthly basis between both parties
20. That Profit and Loss sharing shall be done on annual basis
21. That Party …… shall maintain all the books of accounts, ledgers etc and shall submit a
financial summary/sheet on the end of every month to other two parties for mutual
discussions and trend analysis.
22. That a weekly meeting shall be held between three parties to discuss the situation of the
business, strategies and planning for future growths. Evaluation sheets shall be also be
discussed during that meeting.
23. That all the assets acquired after the signing of the contract shall be the joint property of
both parties with relevant shares.
24. That any tendering induction which any party may propose, shall be discussed with other
two parties on case to case basis.
25. That all parties agree not to disclose, publish or disseminate to irrelevant parties, any
information, literature, or other material, which may come into possession of either
party as part of the activities under this Agreement.
26. Any decision would be passed after careful discussion between the parties
27. Notice for termination of contract shall be 90-days in advance from any parties
28. In such situation, any other party can purchase the shares of business at agreed price
29. In case any party is not interested in the buying the shares, selling party may introduce
any other party to other two parties
30. In case of dispute, parties may refer to any person or authority for arbitration, mutually
agreed between the parties and the decision made by arbitrator appointed by three
parties would be final
31.
In witness to the above, all the parties have set their hands together as token of acceptance, on
the date and year first above written.

Agreed on behalf of Party A Agreed on behalf of Party B

PARTY A PARTY B
Mr. ABC Mr. XYZ
NIC NIC
S/o S/o
Address Address

PARTY C
Mr. PQR
NIC
S/o
Address

WITNESS1: WITNESS2:

_____________________________ _____________________________