If you own a boat and use it for business purposes, it`s important to have a partnership agreement in place to protect yourself and your boat. A partnership agreement is a legal document that outlines the rights and responsibilities of each partner, including ownership, management, and financial obligations. A well-drafted partnership agreement can help prevent disputes and legal issues down the line.
This article will provide you with a sample boat partnership agreement that you can use as a template for your own agreement.
Sample Boat Partnership Agreement:
This boat partnership agreement (“Agreement”) is made between [Insert name of Partner 1] and [Insert name of Partner 2], collectively referred to as “Partners”.
The Partners wish to purchase and jointly own a [Insert boat type and specifications] (the “Boat”) for the purpose of [Insert intended use of the boat].
The Partners will own the Boat as tenants in common, with each Partner owning an equal share. Each Partner will have the right to use the Boat for the purpose outlined in the Agreement.
Management and Control:
The Partners will share the management and control of the Boat equally. Any decisions regarding the Boat, including maintenance and repairs, must be made jointly by both Partners. In the event of a disagreement, the Partners will attempt to resolve the issue through mediation or arbitration.
Each Partner will be responsible for paying an equal share of the purchase price of the Boat, as well as any ongoing expenses related to the Boat, such as insurance, maintenance, and repairs. Any profits or losses resulting from the use of the Boat will be shared equally between the Partners.
Term and Termination:
This Agreement will remain in effect until the Boat is sold or one or both Partners decide to terminate the partnership. If one Partner wishes to sell their share of the Boat, the other Partner will have the right of first refusal to purchase that share.
Indemnification and Liability:
Each Partner will indemnify and hold harmless the other Partner from any claims, damages, or liabilities arising out of the use of the Boat.
This Agreement will be governed by and construed in accordance with the laws of [Insert state].
A partnership agreement is an essential document for any business partnership, including boat partnerships. By having a clear and concise agreement in place, Partners can avoid disputes and legal issues, and ensure a successful partnership. Use the above sample boat partnership agreement as a template for your own agreement to protect your investment and ensure the smooth operation of your boat partnership.