GENERAL PARTNERSHIP
General Partnership | Limited Partnership | Limited Liability Partnership | Extra-Provincial Partnership
Contact Neufeld Legal PC at 403-400-4092 or Chris@NeufeldLegal.com
A general partnership merely requires that there be a "relationship that subsists between persons carrying on a business in common with a view to profit." [definitions, Partnership Act (Alberta) R.S.A. 2000, c. P-3, comparable to definition in the Partnerships Act (Ontario) R.S.O. 1990, c. P.5] As such, for all intensive purposes, partnerships can arise quite easily, and the law will recognize them as such, unless the participants specifically choose to formalize an alternate legal construct through which they will carry forth their business pursuits. Without structure, the default structure is that of a partnership, which invariably benefits from the formalization of the partnership structure with a well-devised legal agreement.
Nevertheless, establishing structure is important to every business enterprise, whether it is a partnership or otherwise. As such, it makes a lot of sense to establish a clear structure for your business partnership and set it forth in a written partnership agreement. By negotiating and drafting a contract that deals with everything from partner contributions to operations and obligations to exit strategies, the partners will be capable of pursuing the business in a far more meaningful and confident manner. For with a well-devised framework, there is a clear plan of action and a means through which problems and disputes can be resolved. The value of a partnership agreement cannot be understated, given its ever greater importance in the years to come, as things change and develop.
Legal counsel for partnerships and joint ventures therefore must facilitate the realization of optimal profits within a legal framework that lawful protects the business participants. This is essential to maximizing your Canadian partnerships and joint ventures, for it provides important assurances that will enable the business to move forward with confidence while limiting future infighting and breakdowns of the business relationship. For legal counsel as to your business partnership or joint venture, contact our law firm at Chris@NeufeldLegal.com or 403-400-4092 / 905-616-8864.
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