Tips for Drawing up a Partnership Agreement
For many businesses, setting up a beneficial partnership agreement with another business is not only a good idea, but an essential one. They can, however, be complicated to set up, since they offer plenty of opportunities for mistakes. These mistakes could end a partnership before it even begins, could become costly for all involved parties, or worse still, could lead to disputes that find some or all parties on the wrong side of commercial law. Because of this, partnership agreements should be drawn up with absolute care.
Following these guidelines will help:
Set Clear Objectives
It is important to know what the partnership is working towards, and how it will get there. A partnership will always be more successful when all who are involved know exactly what they are working towards, which means that goals should be expressed clearly and realistically in the partnership agreement.
Be as Thorough and Clear as Possible
When it comes to business partnerships, the devil is in the details. Oversights and vague language can break a contract, open up spaces for loop-holes, or even render many of its terms inapplicable. Be as clear as possible when setting out the terms of a contract, particularly where dispute resolution and party expectations are concerned.
This concerns both the liability of each party, as well as their expectations. If everyone is clear of what they need to do, and how to solve problems should they arise, the partnership can be conducted more seamlessly.
Have a Commercial Lawyer Assist You
Setting up a partnership agreement correctly can be more complicated than it seems. There is a lot of legality behind how they govern the nature of partnerships, and mistakes in this regard, can be devastating not only to the partnership, but also to the parties involved.
For that reason, it is always a wise choice to have a commercial law specialist have a look over the agreement for you, as to ensure that it meets the expectations of the law.
Contact Barnard Inc. for Assistance Today
If you would like professional assistance from an experienced team of commercial law professionals¸ be sure to get into contact with a representative from Barnard Inc. today, or visit our website for further details on our offers and services.