PARTNERSHIP AGREEMENT

The Partnership Agreement  |  No Agreement  |  Generic  |  Customized  |  Primary Components

Contact Neufeld Legal PC at 403-400-4092 or Chris@NeufeldLegal.com

Partnerships are created when the appropriate legal conditions exist as a result of business participants undertaking business together for profit, irrespective of the existence or absence of a formal, written partnership agreement. And without a formal written partnership agreement that each of the parters have agreed to and signed off on, the business partners can find themselves subjected to legal expectations and obligations that they were not previously aware of or may be contrary to their personal belief was with respect to their business arrangement. As such, having a formal, written partnership agreement that has been agreed upon and executed by each of the business partners, should be essential for any person looking to do business in collaboration (or partnership) with others.

The partnership agreement is a formal legal document that serves to establish and define the terms of the business relationship between the partners, which can include a range of potential aspects, which may include:

- What is the business of the partnership.

- How is the business of the partnership to be undertaken.

- What are the contributions of each the partners, both in terms of capitalization and work undertaken in furtherance of the partnership.

- What is the division of duties and responsibilities amongst the partners.

- How are the partnership profits distributed amongst the partners.

- How the partnership is to be financed.

- How are decisions of the partnership to be made.

- What the voting structure is amongst the partners.

- How are new partners brought into the partnership.

- What are the exit strategies available to the partners.

- What happens to a partner's partnership interest upon their death, disability or default.

- What is the scope of the restrictive covenants imposed upon the partners, from confidentiality to non-competition and non-solicitation.

- What is the duration of the partnership.

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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