Going into business with someone you trust and who shares your vision is certainly exciting. Unfortunately, over time, the visions you and your partner once shared may change, or someone may not fulfill their responsibilities. It is for this reason that partnership agreements are so vital to any business. A partnership agreement can help prevent disputes from forming and protect your rights when they do occur. At Beth Santilli Law, LLC, our experienced business partnership attorney can help you draft a partnership agreement and solve disagreements when they arise.
What is a Partnership Agreement?
Partnership agreements detail the rights and responsibilities of each partner, and they outline how to proceed with the dissociation or dissolution of the partnership. These provisions will direct how partners will leave the business relationship as well as how the assets and liabilities of the partnership are to be distributed in such events. Without a partnership agreement, disputes and certain operating matters are governed by the South Carolina Uniform Partnership Act.
Common Elements in Partnership Agreements
The most common elements and provisions in partnership agreements include:
– Names and addresses of all partners and the partnership
– The length of the partnership
– The purpose of the partnership
– Financial information, including bank account information and check signing authority
– The contributions of each partner and the valuation of each
– The compensation each partner will receive
– How salaries and profits are to be distributed between the partners
– The operational responsibilities of each partner
– Decision-making abilities of each partner
– The vacation time and work hours of each partner
– Dispute resolution methods, including mediation
Common Partnership Disputes
People go into business with one another in the hope that the venture will be a successful one for each partner. Sometimes, however, instances arise that lead to a dispute among the partners. Some of the most common partnership disputes include:
– A partner is not performing well or has stopped contributing to the partnership
– A partner may refuse to fairly divide the assets when another partner chooses to leave the partnership
– Disagreements over the division of profits
– A partner may defraud one or more of the other partners, or misappropriate funds or assets
Partnership disputes are extremely complex matters, requiring great attention to detail and an understanding of the core of the dispute. Partnership disputes often have the potential to become personal. A business partnership attorney can help to resolve the disagreement quickly and efficiently.
Get Legal Help Today
In the best of circumstances, a partnership will always proceed smoothly and in the interest of all partners involved. Unfortunately, disputes often arise, even when the parties have entered into a comprehensive and well drafted partnership agreement. If you are entering into a partnership, contact the experienced business partnership attorneys at Beth Santilli Law, LLC, today.