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Why should a lawyer review your business partnership agreement?

On Behalf of | Dec 9, 2022 | Business Formation

A partnership agreement is necessary to govern your newly-formed partnership. The agreement sets expectations, defines roles and covers necessary responsibilities. With so many legal forms accessible easily online, you may want to create the partnership on your own. With careful consideration, you may find that a business lawyer is a better investment.

There are a few benefits to having a business lawyer review your partnership agreement.

Ensures equitable ownership

A business lawyer can help define the ownership percentages and profit distribution to eliminate any ambiguity in the contract terms.

Clarifies decision-making procedures

A business lawyer can help you negotiate the decision-making procedures. They can also help identify potential loopholes in the language to ensure that dispute resolution is clearly defined.

Addresses survivorship and incapacitation

A partnership operates with multiple controlling parties. When one party becomes incapacitated or passes away, the partnership agreement must define survivorship and control distribution afterward. That partner’s share in the business must pass to a beneficiary or return to the other partner or partners.

Includes provisions for partnership structure changes

Sometimes even the best partnership will come to an end. If one party wishes to withdraw their interest, the agreement must define how that happens. A business lawyer ensures that the process in the agreement is legally compliant and enforceable.

Business contracts of any kind are legally binding documents. A partnership agreement is no exception. Make sure your agreement is comprehensive and meets the obligations of the law by working with a business lawyer to review, refine and complete the agreement.