Partnership Agreements
Like a shareholders’ agreement, partnership agreements are essential in the operation of a partnership to create certainty and set out roles and expectations of the partners. The preparation of partnership agreements require the understanding of the business and the respective contributions of the participants, the distribution of decision-making powers and responsibilities, the different roles of active and passive participants, the most suitable methods of dispute resolution and the appropriate exit procedures for partners. The commercial law group of Waterous will always urge the participants to put these agreements in place at the beginning of the enterprise, while the objectives are mutual and before disputes have arisen. A little planning upfront can save a large headache down the road.