People enter Partnerships mainly because they trust one another and want to do business together.
These partnerships can be family, friends or acquaintances who want to work together. A partnership agreement helps to avoid any communication issues and legal problems if there is a disagreement.
Partnership agreements play a very important role:
- They protect owners when one partner dies
- If there is a dispute, a partnership agreement helps to resolve this
- In the event of a sale to a new partner, a partnership agreement stipulates who gets what
- Places limits on decisions either party can make or awards control of the business to one of the partners
- And if the partnership is dissolved.
A partnership agreement sets out how the partnership is owned. Is it an equal partnership or does one partner own more than the others? If so then the majority may take on more responsibility for more profits.
Partnership Agreements are put in place for the protection of all parties. Talk to us to get your partnership agreement in place. We look forward to hearing from you. Give us a call 09 267 2700 or contact us.