The partnership agreement is in no way provided for by law. This partnership agreement is very common and results from business practice. When two Thai or foreign companies join together to serve their respective interests in a strictly limited way, it is in your best interest to draft and enter into a partnership agreement with that company. Depending on your company’s business and the nature of your partnership, drafting a compelling and exciting business partnership agreement requires the assistance of a legal professional. We also offer you the possibility to download your partnership agreement in Thai and English in an editable and professionally written word format.
The business partnership agreement is not provided for by law – it is an innominate agreement. This partnership agreement is very common and results from business practice. When two companies come together to serve their respective interests in a strictly limited way, it is in your interest to draft and enter into a partnership agreement or a partnership agreement with that company. Depending on your business and the nature of your partnership, drafting a compelling and exciting business partnership agreement requires the assistance of a legal professional. We also offer you the possibility to download your partnership agreement in Thai and English in editable and professionally written Word format.
What are the essential clauses of a partnership contract?
No compulsory mention and some forbidden clauses for this contract concluded between professionals. So, how to write a business partnership agreement in Thailand with all the essential provisions? Here are the important clauses for your partnership agreement:
The identity of the parties: The names of the parties and their identities must be included in the contract, also attach the company’s affidavit and the identity card of the signing directors ;
The purpose of the partnership agreement is to ensure that the framework of their business relationship is described as precisely as possible. The greater the level of precision, the lower the risk of litigation. By drafting this clause with precision, each party knows what it is committing to. The following article highlights the respective commitments and obligations of the parties and specifies the limitations of liability of each. The price: an essential element of any business contract, the price must be indicated in figures and letters. The clause can also mention the terms of payment. The confidentiality clause: in order to preserve their respective confidential information, both parties should insert a confidentiality clause or sign an NDA in parallel to the commercial partnership agreement. The duration of the commercial relationship: like any contract, the partnership agreement mentions a fixed or indefinite duration. This article can specify the terms of termination and tacit renewal. A termination clause: the parties may provide in their contract for reasons of early termination. This clause is advantageous for ending an unsatisfactory contractual relationship without having to go to court. Applicable law and competent court: this clause makes it possible to organize the procedures for settling possible disputes to avoid wasting time. The date and signature of the legal representatives of the partner companies: When a business partner proposes a partnership agreement that has already been drafted, the co-contractor must check the following point in particular in order to make an informed commitment
What are the obligations of the parties?
While the parties to the business partnership agreement must meet their obligations, they do not lose their autonomy. As a party to the agreement, you are only required to fulfill the commitments made. If the contract provides for financial remuneration for your partner, you must pay it. You must respect the agreed price of the service, but also the terms of payment. You are obliged to allow your partner to perform his tasks properly. Under no circumstances may you act in bad faith in the performance of the business partnership agreement and prevent your partner from performing his duties. Such behavior is punishable under Thai law. In case of failure to fulfill its obligations, the defaulting partner can be held liable. He may be ordered to pay damages and any payment provided for in the contract.
Can a partnership contract be concluded for any type of cooperation?
The parties may decide by mutual agreement to add any clause that suits their situation, meets their needs or allows them to secure their relationship. It should be noted that the partnership contract can be concluded between two companies, regardless of their legal form and in all sectors of activity. Moreover, the companies linked by a partnership do not become joint or subordinate to each other. They remain independent and do not have to divulge to each other their confidential information, whether legal, accounting or financial.
What is the duration of a partnership agreement?
The conditions of the partnership contract are completely free and allow a wide variety of collaborations. On the other hand, there is a notion of duration, because if it is a one-time operation, other contracts such as the service contract or the sales contract may seem more appropriate. You can provide for a fixed or indefinite duration: a fixed duration: the contract can be concluded for a fixed period at the end of which it will automatically end. In this case, the partners will not have to give any notice. An indefinite term: If the partners wish to create a very long-term partnership, they can provide for an infinite term. If one of the partners wishes to end the league, he will have to give the notice of termination of the contract by following the conditions foreseen by the agreement.
How can a partnership agreement be terminated?
To answer this question, you must first refer to the partnership agreement you have with your partner. If the contract is for a fixed term, it will naturally end at the end of the contract, without the need to do anything else, unless you have included an automatic renewal clause. If the contract has been concluded for an indefinite period, it must provide for conditions of termination, with a time limit to be respected and a formality. In some cases, there may be automatic termination of the contract, for example in case of force majeure. The agreement may also provide for penalties in the event of abrupt termination.
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