Agreement Admitting A Minor To The Benefit Of Partnership
This agreement, dated the ____ day of ____, is
entered into between Mr. ABC, Mrs. XYZ, and Mr. PQR as the First, Second,
and Third Part, respectively, and Mrs. EFQ, acting for herself and as the
natural guardian of her minor son, Y, as the Fourth Part.
The First, Second, and Third Parties have been engaged in a partnership
business, along with Mr. D, based on the partnership deed executed on ____.
Tragically, Mr. D passed away on ____, leaving his widow, Mrs. DEF, and a
minor son, Y, as his legal heirs.
Following Mr. D's demise, Mrs. DEF claimed her share in the assets of the
partnership, including goodwill and undistributed profits. The parties
involved have resolved this claim amicably, agreeing to pay Mrs. DEF a sum
of Rupees ____ as full payment for the share of the deceased partner, Mr. D.
This sum includes goodwill and capital assets of the partnership.
Furthermore, the agreement states that Y will be admitted to the benefits of
the partnership, and he will receive a share of 5% in the net profits of the
PAYMENT AND SAFEGUARDING INTERESTS
Prior to the execution of this agreement, an amount of ____ has been paid to X.
This payment was made partly in cash and partly in securities, such as units of
the Unit Trust, purchased jointly in the name of Mrs. DEFand the minor Y. This
measure is taken to safeguard Y's interests. Mrs. DEF acknowledges the full
receipt of this amount and declares that she, as Y's natural guardian, holds no
further claims against the firm regarding Mr. D's share.
ADMISSION OF MINOR Y TO PARTNERSHIP BENEFITS
As per this agreement, minor Y is granted admission to the benefits of the
partnership, entitling him to a 5% share in the net profits. Importantly, he
will not bear any liability for the losses incurred by the firm.
PROFIT DISTRIBUTION AND READJUSTMENT
The First, Second, and Third Parties agree to pay Y's share of the net profits
within three months from the end of the accounting year. Additionally, the
agreement outlines the readjustment of the partners' shares in the profits of
the firm, which will be as follows:
Mr. ABC's share will be ____ 35%
Mrs. XYZ's share will be ____ 35%
Mr. PQR's share will be ____ 25%
However, any losses sustained by the partnership will be shared equally
among the First, Second, and Third Parties.
FUTURE PARTNERSHIP PROSPECTS
The agreement anticipates that when Y reaches the age of 18, he will be
considered for admission as a partner in the firm, provided the partnership
continues until then. The terms of his admission as a partner will be agreed
upon by all existing partners and the legal representative of the late Mr. D.
CONTINUATION OF BUSINESS
Subject to the provisions mentioned above, the First, Second, and Third Parties
intend to continue carrying on their business as a partnership, in accordance
with the terms outlined in the original partnership deed.
REGISTRATION AND COMPLIANCE
To ensure legal validity, all amendments made by this agreement to the
partnership's constitution and terms will be duly registered as required by the
Partnership Act, 1932 and the Income Tax Act, 1961 within the prescribed
In witness whereof, the involved parties have affixed their signatures on this
____ day of ____.