A partnership agreement sets forth the terms and conditions that govern the relationship
between business partners and their obligations to the partnership. Without a written
partnership agreement, state law may determine the default rules as to the rights of
partners and how partnership assets and liabilities will be distributed. Depending on the
goals and purposes of the partnership, various provisions can be included in the
agreement detailing the rules that will govern the relationship between the partners and
what shall occur if specific contingencies arise. This partnership agreement article on
Acts Requiring Majority Consent may be inserted into a partnership agreement and can
be modified depending on the partners’ specific needs.
PARTNERSHIP AGREEMENT ARTICLE
RE: ACTS REQUIRING MAJORITY CONSENT
The following acts may be done only with the consent of Partners whose capital
accounts total a majority:
(a) Borrowing money in the Partnership's name, other than in the ordinary course of
the Partnership's business or to finance any part of the purchase price of the Partnership's
properties. [Comment: This provision can be limited to borrowing money in excess of a
certain amount, for example, “borrowing money in the Partnership’s name in excess of
(b) Transferring, hypothecating, compromising, or releasing any Partnership claim
except on payment in full.
(c) Selling, leasing, or encumbering any Partnership property.
(d) Knowingly suffering or causing anything to be done whereby Partnership
property may be seized or attached or taken in execution, or its ownership or possession
(e) Executing any security agreement, bond, or purchase or contract to purchase
with a monetary value in excess of ____________ dollars ($_______).
(f) Salaries, hiring and firing of employees, and issues related to the marketing of
[Comment: The Partnership may modify this Article to best suit its needs]
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