Many individuals in Florida and elsewhere have entered into a business arrangement with another party, with hopes of achieving new levels of success. While these new ventures can seem promising at first, there may also be a certain level of risk involved, and should partnership disputes arise, the health of a business could suffer. Those who are considering entering such an arrangement may find it advisable to explore the benefits of including a written partnership contract.
Upon being signed by all parties involved, a partnership contract may become a legally binding document that dictates the terms of the business arrangement. Some of the terms of a similar agreement may dictate each party's role within the business, as well as their level of ownership and the percentage of profits each will receive. Other areas to consider upon negotiating a partnership may include a set period of time for the arrangement, as well as conditions regarding how the agreement may be terminated.
A written contract will not only assist in clarifying the terms of an agreement, but it may also reduce the potential of conflict between partners. Without a previous agreement, any changes within the partnership could be highly contested. The views and wishes of each party may differ, and addressing these issues in the beginning could help prevent a potential disaster in the future.
While having a written contract is generally advisable, these documents can be exceedingly complex. Should partnership disputes arise, an individual could benefit from seeking guidance from an attorney with experience in handling such intricate matters. An attorney can evaluate the situation, along with the contract, and provide a client in Florida with advice on the best course of action with which to proceed.
Source: thebalance.com, “Why Your Partnership Needs a Written Agreement“, Jean Murray, Accessed on Dec. 27, 2017