CJ Jouhal
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An Entrepreneur that leverages technology to grow and enhance a business. A Technologist that understands business and entrpreneurship and makes technology facilitate the business model.

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Five Clauses Every Partnership Agreement Needs

The buy-back clauses of the partnership contract prepare for the possibility that the partnership will end at some point. Adding the following clauses to your partnership agreement makes it more comprehensive and better for the partnership. Unless you have a partnership agreement that determines your rights and obligations, your national law applies and dictates important partnership matters. Most states have adopted a version of the Uniform Partnership Act (or De Revised Uniform Partnership Act). In essence, that law imposes a set of standard rules which apply where a written partnership agreement does not exist or an existing agreement is not the subject of a particular dispute. Standard rules generally think that partners have invested a lot of time and resources in the business. Therefore, under State law, profits and losses in the event of separation of companies are distributed equally. However, we all know that, in some cases, at the beginning of the partnership, the partners intended to enter into a different agreement; especially if there was a silent partner who invested the capital, while another partner did the daily work. Partnerships are established with the hope of making a profit. The partnership agreement should address the “when and how” of the benefits attributed to each legitimate partner. In addition, it should be the way in which losses are distributed during the activity and in the event of dissolution. .

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