Free Silent Partner Contract Template
SILENT PARTNER CONTRACT
This Silent Partner Contract ("Contract") is made and entered into on [Date], by and between [Your Name], residing at [Your Company Address] ("Active Partner"), and [Silent Partner's Name], residing at [Silent Partner's Address] ("Silent Partner").
1. Partnership Agreement
1.1 The individual who is designated as the Active Partner, and the individual who holds the role of the Silent Partner, have come to a mutual agreement. They have decided to form a silent partnership. The main objective of this partnership is to establish and operate a business within the restaurant industry.
2. Roles and Responsibilities
2.1 Active Partner's Responsibilities:
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Manage the day-to-day operations of the business.
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Make strategic decisions regarding the business direction and growth.
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Provide regular updates and financial reports to the Silent Partner.
2.2 Silent Partner's Responsibilities:
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Please provide a capital investment amounting to two hundred dollars.
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Participate in major business decisions upon mutual agreement with the Active Partner.
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Receive regular updates on the business performance and financial status.
3. Capital Contribution
3.1 The Silent Partner, a crucial component of this business entity, has formally consented and given his commitment to contribute a significant amount, specifically $50,000, as his capital investment in the business. This amount is not to be paid in full at once, rather it's agreed upon to be dispensed in monthly installments. Each monthly payment will amount to $5,000, and this series of regular payments will span over 10 months.
4. Profit Sharing
4.1 The parties involved in this agreement have mutually consented to distribute any profits and losses that may accrue, by the terms and conditions that have been outlined as follows:
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60% of profits shall be allocated to the Active Partner.
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40% of profits shall be allocated to the Silent Partner.
The parties involved shall carry the financial losses. This responsibility shall be allocated and divided among them based on the ratio or percentage of the capital contributions each party has previously invested in the joint endeavor.
5. Term and Termination
5.1 This Contract is set to begin its validity on the date of June 30, 2055. It will then remain in force and continue to be in effect unless, at any point in time, both parties involved in the agreement decide, one with another, to bring it to a termination.
5.2 This contract can be terminated by either party, but this can only transpire if a written notice which needs to be issued 30 days in advance, is given to the other party beforehand.
6. Governing Law
6.1 This Contract shall be governed by and construed under the laws of [Jurisdiction].
IN WITNESS WHEREOF, the parties hereto have executed this Silent Partner Contract as of the date first above written.
[Your Name] (Active Partner)
[Date Signed]
[Silent Partner's Name]
[Date Signed]
