The Partnership Agreement

The impact of disputes can be lessened if the partners have executed a well-planned partnership agreement that specifies everyone's rights and responsibilities. The agreement might provide such details as the following:

  • Amount of cash and other contributions to be made by each partner
  • Division of partnership income (or loss)
  • Partner responsibilities - who does what
  • Conditions under which a partner can sell an interest in the company
  • Conditions for dissolving the partnership
  • Conditions for settling disputes
Back to '2.1: Legal Forms of Business'