Do’s
- Clearly 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.
- Specify the capital contributions that each partner will make to the partnership, including the amount and timing of the contributions.
- Establish a clear process for decision-making and dispute resolution, including voting procedures and the use of mediation or arbitration to resolve disputes.
- Clearly outline the roles and responsibilities of each partner, including management and decision-making authority.
- Establish procedures for transferring partnership interests and valuing those interests.
- Address important issues such as profit sharing, intellectual property, and non-compete and confidentiality provisions.
- Consult with an experienced company law specialised lawyer to ensure that the partnership agreement complies with all relevant laws and regulations
Don’ts
- Don’t overlook important details or leave issues unresolved. A comprehensive partnership agreement can help prevent disputes and misunderstandings down the road.
- Don’t rely on oral agreements or informal understandings. All important terms should be clearly documented in the partnership agreement.
- Don’t forget to consider contingencies such as illness, disability, retirement, or dissolution of the partnership.
- Don’t assume that all partners have the same goals or values. It is important to address any differences or potential conflicts in the partnership agreement.
- Don’t be afraid to seek outside advice or assistance. Consulting with a company law lawyer, advocate will help ensure that your partnership agreement is comprehensive and effective.
By following these do’s and don’ts, you can help ensure that your partnership agreement is well-drafted and effective in guiding the operations of your partnership.