Deed of Admission of Partner
Articles of partnership made this ……… day of ……… 2000 between AB son of etc. ……… of the one part and CD son of etc. of the other part to the following effect. Whereas the said AB has been carrying on the business in ……… as its sole proprietor under the name and style of ……… at ……… and whereas, for development of the said business by mutual assistance and co-operation the said AB has agreed to admit CD as a working partner and in consideration of the service to be rendered to pay him a sum equivalent to ……… % share of the net profits. Now this deed witnesseth and it is hereby agreed and declared as follows:
1. The said CD is hereby admitted as a working partner of the said AB in his said trade with effect from the date of execution of these presents in consideration of good, faithful and efficient service to be rendered for development of the trade but shall have no claim to the assets or goodwill.
2. The said CD shall not have to contribute any sum towards the capital and shall have accordingly no claim or interest in the stock-in-trade and other assets or in the goodwill of the trade which shall all remain the exclusive property of AB as before but shall be entitled only to a sum representing ……… % of the net profits in exchange of good and faithful service to the said AB as hereunder stipulated.
3. The said CD shall serve the said AB truly and faithfully in all respects, carry out all his orders to the best of his knowledge, skill and power, observe all rules of the establishment, maintain and preserve all its trade secrets and shall do, execute and perform ungrudgingly all work entrusted to him by the said AB but shall have no right to interfere with the management.
4. The partnership hereunder created shall continue until such time when the same is dissolved by the said AB upon giving one month’s notice in writing to the said CD provided, however, that in case of fraud, misconduct or dereliction of duty on the part of the said CD the same may be dissolved with immediate effect.
5. The said CD shall have no power to raise any loan or loans nor to pledge the credits of the firm under any circumstances.
6. The said CD shall not, during the continuance of this partnership directly or indirectly, serve anywhere in any capacity but shall devote his whole time and whole-hearted attention to the said trade and never make himself absent except casually without leave of absence and after dissolution shall not directly engage himself in any concern carrying on similar trade or business within a radius of …… miles from its present place.
In witness whereof the parties hereto have executed these presents on the day, month and year first above-written.
Signed, sealed and delivered
by AB in the presence of:
Signed, sealed and delivered
by CD in the presence of: