Partnership disputes are inevitable but oftentimes can easily be solved. However, when a big dispute arises, you may need to involve the help of a Ventura contract dispute lawyer. Oftentimes, many partnership disputes can be avoided with a partnership agreement. It’s important to keep in mind that if you don't have a partnership agreement in place, it's likely that your partnership will be governed by a default set of rules set out by the state.
What can a partnership agreement can do for your business?
A partnership agreement will give you a good understanding of your business relationship with your partners - because you will write a partnership agreement in conjunction with your business partners, you will be able to make an agreement that suits all of your needs. Your agreement will discuss how the business profits will be divided among partners, the rights and responsibilities of the partners, and the proper steps to be taken if a partner leaves the business.
What should be included in your partnership agreement?
- Name of your partnership
- Respective contributions of the partners
- How profits, losses, and draws will be allocated
- The authority of the partners
- Business decision-making powers
- Bringing in new partners
- Dealing with the withdrawal or death of a partner
- How to resolve a dispute
It's important to consider these things before having your partnership agreement drafted by a Ventura contract dispute lawyer, which should come before you open for business. You'll thank yourself later for laying out the terms and conditions before a dispute arises.