2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS › Chapter 86 - Limited Partnerships › Section 8615 - Contents of partnership agreement

§ 8615. Contents of partnership agreement.
(a) Scope of partnership agreement.--
Except as provided under subsections (c) and (d), the partnership agreement governs:
(1) relations among the partners as partners and between the partners and the limited partnership;
(2) the rights and duties under this title of a person in the capacity of a partner;
(3) the activities and affairs of the partnership and the conduct of those activities and affairs;
(4) the means and conditions for amending the partnership agreement; and
(5) the means and conditions for approving a transaction under Chapter 3 (relating to entity transactions).
(b) Title applies generally.--
To the extent the partnership agreement does not provide for a matter described in subsection (a), this title governs the matter.
(c) Limitations.--
A partnership agreement may not do any of the following:
(1) Vary a provision of Chapter 1 (relating to general provisions) or Subchapter A of Chapter 2 (relating to names).
(2) Vary the right of a partner to approve a merger, interest exchange, conversion, division or domestication under section 333(a)(2) (relating to approval of merger), 343(a)(2) (relating to approval of interest exchange), 353(a)(3) (relating to approval of conversion), 363(a)(2) (relating to approval of division) or 373(a)(2) (relating to approval of domestication).
(3) Vary the required contents of a plan of merger under section 332(a) (relating to plan of merger), plan of interest exchange under section 342(a) (relating to plan of interest exchange), plan of conversion under section 352(a) (relating to plan of conversion), plan of division under section 362(a) (relating to plan of division) or plan of domestication under section 372(a) (relating to plan of domestication).
(4) Vary a provision of Chapter 81 (relating to general provisions) or 82 (relating to limited liability partnerships and limited liability limited partnerships).
(5) Vary the provisions of section 8611(b), (c), (d) and (e) (relating to short title and application of chapter).
(6) Vary the law applicable under section 8614 (relating to governing law).
(7) Vary any requirement, procedure or other provision of this title pertaining to:
(i) registered offices; or
(ii) the department, including provisions pertaining to documents authorized or required to be delivered to the department for filing under this title.
(8) Vary a limited partnership's capacity under section 8620(d) (relating to characteristics of limited partnership) to sue and be sued in its own name.
(9) Vary a provision of section 8620(e).
(10) Eliminate the duty of loyalty provided for in section 8649(b)(1)(i) or (ii) or (2) (relating to standards of conduct for general partners) or the duty of care, except as provided in subsection (d).
(11) Vary the contractual obligation of good faith and fair dealing under sections 8635(a) (relating to limited duties of limited partners) and 8649(d), except as provided in subsection (d).
(12) Provide indemnification or exoneration in violation of the limitations in sections 8648(g) (relating to reimbursement, indemnification, advancement and insurance) and 8649(i).
(13) Vary the information required under section 8618 (relating to required information) or unreasonably restrict the duties and rights under section 8634 (relating to limited partner rights to information) or 8647 (relating to general partner rights to information), except as provided under subsection (d).
(14) Vary the power of a person to dissociate as a general partner under section 8664(a) (relating to power to dissociate as general partner and wrongful dissociation), except to require that the notice under section 8663(a)(1) (relating to dissociation as general partner) be in record form.
(15) Vary the causes of dissolution specified in section 8681(a)(6) (relating to events causing dissolution).
(16) Vary the requirements to wind up the partnership's activities and affairs specified in section 8682(a), (b)(1), (d) and (e) (relating to winding up and filing of certificates).
(17) Unreasonably restrict the right of a partner to maintain an action under Subchapter I (relating to actions by partners).
(18) Vary the provisions of section 8694 (relating to special litigation committee), except that the partnership agreement may provide that the partnership may not have a special litigation committee.
(19) Except as provided in section 8617(b) (relating to amendment and effect of partnership agreement), restrict the rights under this title of a person other than a partner.
(d) Rules.--
Subject to subsection (c)(12), the following rules apply:
(1) The partnership agreement may:
(i) specify the method by which a specific act or transaction that would otherwise violate the duty of loyalty may be authorized or ratified by one or more disinterested and independent persons after full disclosure of all material facts;
(ii) alter the prohibition in section 8654(a)(2) (relating to limitations on distributions) so that the prohibition requires only that the partnership's total assets not be less than the sum of its total liabilities; and
(iii) impose reasonable restrictions on the availability and use of information obtained under section 8618, 8634 or 8647 and may define appropriate remedies, including liquidated damages, for a breach of any reasonable restriction on use.
(2) To the extent the partnership agreement expressly relieves a partner of a responsibility that the partner would otherwise have under this title and imposes the responsibility on one or more other partners, the agreement also may eliminate or limit any fiduciary duty of the partner relieved of the responsibility which would have pertained to the responsibility.
(3) If not manifestly unreasonable, the partnership agreement may:
(i) alter the aspects of the duty of loyalty stated in section 8649(b)(1)(i) or (ii) or (2);
(ii) identify specific types or categories of activities that do not violate the duty of loyalty;
(iii) alter the duty of care;
(iv) alter or eliminate any other fiduciary duty; and
(v) prescribe the standards by which the performance of the contractual obligation of good faith and fair dealing is to be measured.
(e) Determination of manifest unreasonableness.--
A court shall decide as a matter of law whether a term of a partnership agreement is manifestly unreasonable under subsection (d)(3). The court:
(1) shall make its determination as of the time the challenged term became part of the partnership agreement and by considering only circumstances existing at that time; and
(2) may invalidate the term only if, in light of the purposes, activities and affairs of the limited partnership, it is readily apparent that:
(i) the objective of the term is unreasonable; or
(ii) the term is an unreasonable means to achieve the term's objective.
References in Text. Section 373(a)(2), referred to in subsec. (c)(2), does not exist.
Cross References.
Section 8615 is referred to in sections 8611, 8612, 8614, 8617, 8618, 8620, 8621, 8625, 8634, 8635, 8647, 8649, 8654, 8664, 8681, 8682, 8691, 8692, 8694, 8695 of this title.