A partnership agreement can lend a very strong foundation to a business. By effectively and carefully defining a business relationship in writing, this can allow the partnership to grow and expand and thus contribute to the success of the enterprise. Getting the right partnership agreement in place is vitally important for the smooth and effective day to day running of the initiative.
Oratto is a web-based platform developed to link high end legal solutions and consumers. The focus of Oratto is on the creating a straightforward process by which consumers can access the business legal advice they need. When legal solutions for businesses are necessary, it's important to get specific, accurate advice in the very early stages to ensure that a comprehensive assessment of your business needs is carried out. All of the solicitors featured on this page are experts in the preparation and drafting of all kinds of partnership agreements and will be happy to advise you right from the start. If you aren't sure which option to select, then you may find Oratto's Match facility useful. This function allows you to submit your details and requirements to us and we will carefully select the most appropriately qualified solicitor to connect with you.
Your chosen solicitor will be able to advise you specifically, but essentially your partnership agreement will define all rights and responsibilities of the individual parties and cover all provisions necessarily for the business to operate smoothly. In addition, it can cover what happens in less palatable situations such as the dissolution of the business or in the event of the death of one of the partners. Having a solid partnership agreement in place before any time or money is invested in the venture is very important; no one likes to think of things going wrong but it's vital to be able to deal with them effectively if they do.
Construction of a partnership agreement
Key clauses can often include:
- The capital contribution of each party. It's also worth considering what will happen if more money is needed before a profit can be made.
- How decisions will be made, especially difficult or important ones, and whether a unanimous consensus is required.
- How all salaries and distributions will function.
- How disability or death is dealt with. This includes the handling of insurance policies, Wills and any trusts; especially who will inherit the partners' shares of the business.
- Exit strategies. It's vital that these are discussed openly and comprehensively at the beginning of the partnership agreement, rather than in a pressured environment if something goes wrong.
Your chosen solicitor will be able to discuss all of your details and requirements with you to ensure that the partnership agreement you are entering into is fair and comprehensive before you become bound by it. The effective function and support of a business through a strong partnership is a very valuable tool and one which your chosen lawyer can help you create and protect through a high quality partnership agreement.