Partnership Agreement Drafting
A partnership agreement is a written agreement between two or
more individuals who join as partners to form and carry on a for-profit
business.
Partnership
agreement includes –
Percentages of ownership and distribution of profits and
losses
Description of management powers and duties of each partner
Term (length) of the partnership
How the partnership can be terminated
How a partner can buy his/her share of the partnership.
The
Importance of the Partnership Agreement
1 It Defines partners Roles and Responsibilities
2 Helps in Structure Building
3 How much each partner will invest
3 Disputes resolution
4 Financial Responsibilities
5 How the money will be Withdrawal
6 How new partners are admitted
7 Liability of Partners
Other Clauses which are important in
a Partnership Agreement
1 NON Disclosure agreement
2 NON-Compete agreements
3 Mediation
Why prepare a partnership
agreement from attorney
Getting an attorney to help you with the process of
preparing your partnership agreement seems like it's an expensive waste of
time. It's not. Remember, if it isn't in writing, it doesn't exist, so putting
every possible situation or contingency into a partnership agreement can
prevent expensive and time-wasting lawsuits and hard feelings between the
partners.
