THE NEED FOR BUSINESS PARTNERSHIP AGREEMENT, EVEN AMONG CLOSE ASSOCIATES

THE NEED FOR BUSINESS PARTNERSHIP AGREEMENT, EVEN AMONG CLOSE ASSOCIATES

Partnerships often arise from trust between friends, family members or close business associates. Relying solely on trust without a formal partnership agreement is risky.

A partnership agreement is a legally binding document that outlines the roles, duties and rights of each partner. It sets clear boundaries on profit-sharing, decision-making, capital contributions, dispute resolution and exit strategies. This can preserve relationships by providing clarity.

Benefits:
1. Clarity of Roles: Each partner understands his duties and scope of involvement.

2. Conflict Resolution: Pre-agreed mechanisms for resolving disputes minimize issues.

3. Business Continuity: Clear procedures for unforeseen events like a partner’s exit or incapacity.

4. Legal Protection: Safeguards interests and ensures compliance with the law.

Without a partnership agreement, disputes can escalate, resulting in costly litigation and affect business. Nigerian business law implies rules in the absence of an agreement, which may not reflect your intentions, e.g. profit and loss may be shared equally, regardless of size of contributions.

A partnership may begin in harmony but end in discord if expectations are not clearly documented. A well-drafted agreement ensures fairness, minimizes risks and protects both the business & relationships. In business, trust is essential but clarity is not negotiable.

If you need legal help with preparing or handling a comprehensive partnership agreement or other business or property documentation, transaction or matter, contact Apex Chambers, renowned Law Firm of the best Business/Corporate/Commercial and Property/Real Estate Lawyers, Barristers, Solicitors, Advocates, Attorneys and Notary Public with 17 years legal expertise and experience and a Law Office in Port Harcourt, Rivers State, Nigeria.

Phone: +2347030868694

Email: info@apexchambersglobal.com

Website: www.apexchambersglobal.com