When two or more people go into business together, it can work well as each person brings different strengths and perspectives to the table. However, these types of relationships can break down over time, and what was once a beneficial partnership can become problematic. This is why strong partnership contracts are good for each person involved and the long-term health of the Oregon business.
The foundation of a good partnership agreement is a good contract. These legally binding agreements can protect the interests of both parties in various types of contingencies, making it easier to resolve disputes and shield the profitability of the company from impacts caused by personal problems. In a partnership agreement, there should be clear terms for dealing with disagreements and resolving conflict between partners.
A partnership contract can also include terms for what will happen in case of the unexpected death of one partner or in the event that one partner wants out of the business. It may also be prudent to have a contract address what will happen should one partner go through a divorce. As all marital property is subject to division in a divorce, including a small business, this personal event can have a major impact on the other partner and the business as a whole.
Contracts are an important tool that can provide benefits and protections for each person. In a partnership, a contract can provide clarity and peace of mind for each individual who has a hand in running an Oregon company. As with any other legal agreement, it can be beneficial to have experienced guidance when drafting an agreement between business partners.