A partnership agreement is a legal document that outlines the terms and conditions of a partnership. Here are some important points to consider while creating a partnership agreement
Partnership purpose:
Define the purpose of the partnership, including the business activities that the partners will engage in, the geographic area of operation, and the duration of the partnership.
Capital contributions:
Specify the capital contributions that each partner will make to the partnership, including the amount and timing of the contributions. This can include cash, property, or other assets.
Profit sharing:
Outline how profits will be shared among the partners, including the percentage of profits that each partner is entitled to, and how profits will be distributed.
Management and decision-making:
Describe how the partnership will be managed, including the roles and responsibilities of each partner, decision-making authority, and voting procedures.
Dispute resolution:
Establish procedures for resolving disputes between partners, including mediation or arbitration, and specify the jurisdiction and venue for any legal proceedings.
Transfer of partnership interests:
Describe the procedures for transferring partnership interests, including restrictions on the transfer of interests, and the process for valuing the interests.
Termination of partnership:
Describe the procedures for terminating the partnership, including the circumstances under which the partnership can be dissolved, and the distribution of assets upon dissolution.
Intellectual property:
Specify ownership and usage rights for any intellectual property developed by the partnership, including trademarks, patents, and copyrights.
Non-compete and confidentiality provisions:
Include provisions that prohibit partners from competing with the partnership or disclosing confidential information to third parties.
Governing law:
Specify the governing law that will apply to the partnership agreement, as well as any applicable jurisdiction and venue.
Conclusion
It is important to work with an experienced civil lawyer or a good advocate to draft a comprehensive partnership agreement that addresses all of these points and other relevant issues. By doing so, you can help ensure that your partnership operates smoothly and effectively, and that any disputes or disagreements are resolved in a fair and efficient manner.