Partnerships

General Partnership Limitation of Liability Agreement

Vicky Randolph Vicky Randolph
How To Use

This review list is provided to inform you about this document in question and assist in its preparation. This limitation of liability document usually comes up when the partnership has hit some rocky spots and the General Partner wants specific notice of relief in order to continue.

The Limiteds must decide whether this is appropriate or not. As a practical matter, once a Partnership or emerging enterprise gets into trouble, usually only the leader can get it out. If the Limiteds believe otherwise, they should replace the General Partner and move on.

If not, they should probably go along with this approach since litigation is generally long, expensive, and unproductive. However, if the Limiteds believe they can recover in court, then they should not sign this document.

In any event, the request for this kind of signature of a Limited always makes sense for a General Partner to acquire and not always wise for the Limited to give.

  1. Make multiple copies. Give one to each related party. Keep one with the Partnership records.

General Partnership Limitation of Liability Agreement

_________________________________, constituting all of the general partners of the _________________________________ limited partnership and _________________________________, constituting all of the limited partners of _______________________________, agree:

The general partners shall be indemnified by the partnership from all liability related to their actions taken on behalf of the limited partnership, provided that the actions to be indemnified were undertaken in good faith, and do not constitute criminal acts or any act of intentional misconduct.

In the event that a dispute occurs between the limited partnership and a partner as to whether or not an action is properly subject to this indemnity the dispute shall be submitted to arbitration before a single arbitrator under the rules of the American Arbitration Association. Any decision rendered by the arbitrator shall be final and may be entered as a judgment in any court having jurisdiction.

______________________
Date

____________________________ ____________________________
General Partner (if more than one; all must sign)

Limited Partners shall sign the attached Exhibit One or duplicate originals of the same.

Exhibit One: Names & Addresses of Limited Partners and their signatures

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

_____________________________
Limited Partner Signature

Printed Name and Address: _________________________________
Social Security Number: _______________________________

Note: Include as many more lines as there are Limited Partners.