WHY YOU NEED WRITTEN PARTNERSHIP AGREEMENT

WHY YOU NEED WRITTEN PARTNERSHIP AGREEMENT

In 2023 two partners started a wholesale business based on trust without a written partnership agreement. One managed the business funds but, struggling with personal debts, used the partnership’s money to pay off his bank loans.

When the other needed funds for operations, he was shocked to find the account nearly empty. This led to the collapse of the business.

A well-drafted agreement by a Business Lawyer would have prevented this by:

1. Setting Clear Financial Boundaries – Preventing partners from using business funds for personal expenses.

2. Providing Legal Remedies – Specifying fast modes of recovery of misappropriated business funds.

3. Defining Ownership and Responsibilities – Ensuring transparency in financial decisions.

4. Outlining an Exit Strategy – Protecting one’s stake in case of misconduct.

5. Ensuring Business Continuity – Preventing the collapse of a promising venture due to financial mismanagement.

Without a written agreement, business risks increase greatly. Many partnerships fail due to poor legal foundations, mismanagement and disputes.

Always consult a Business Lawyer to draft a legally binding agreement that safeguards parties’ interests.

Relying on trust is dangerous, sound legal protection is needed.
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APEX CHAMBERS, Business and Property Lawyers, Attorneys, Barristers, Solicitors Advocates Legal Practitioners, Legal Consultants, providers of legal services in Port Harcourt, Rivers State, Nigeria.

Phone: +234(0)7030868694

Email: info@apexchambersglobal.com

Website: www.apexchambersglobal.com