WITHOUT A PARTNERSHIP AGREEMENT, PARTNERS HAVE EQUAL SHARES

WITHOUT A PARTNERSHIP AGREEMENT, PARTNERS HAVE EQUAL SHARES

You may bring 90 percent of the business partnership funds, but the law may still hand you only 50 percent of the profit.

Shocking? That is exactly how the law works when business partners fail to properly protect themselves.

Under the law, once people go into business together without concrete agreement on sharing profits, the presumption is equality. It does not matter who brought more capital, who brought the business idea, who worked longer hours or who contributed more to the business.

In the absence of a clear and properly drafted agreement, the law treats partners as equals. Fifty–fifty.

This is where many promising businesses run into bitter disputes. One partner feels cheated, another feels entitled and suddenly “party scatter.”

What started as trust ends in big wahala. A Deed of Partnership prevents that, clearly stating capital contributions, profit and loss sharing ratios, management powers, exit options, dispute resolution mechanisms and what happens if things go wrong.

Business is not built on assumptions but on written Agreement. If you want your capital, investment, time and energy to be protected, do not rely on oral agreement or friendship.

The law only recognizes what is properly documented. So before you go into partnership, get it right from day one.

A Partnership Agreement prepared by a Business Lawyer is what you need.

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APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)
Email: info@apexchambersglobal.com
Website: www.apexchambersglobal.com.