In business, partnership agreements go a very long way when it comes to its progress and development. The partners should not fight over minor operational issues that may hamper the progress of the business and its success. There are times when friends enter into business partnerships and later face disagreements. This can cause the business dear as they refuse to see eye to eye on certain matters. This is where you need the protection of a legal document that is called the partnership deed. It defines the role that every partner will have in the business and ensure that the terms and conditions that have been agreed upon are honored.
Dan DeKoter- Understanding the law of partnership well
Dan DeKoter is a reputed civil lawyer in the USA and he says that when you are entering into a business venture with a friend or anyone else, it is prudent for you to first draft a partnership deed with the help of an experienced professional in the field. The partnership deed will lay down the terms and conditions of the business, the ratio of profits and losses that every partner is entitled to, the type of business that is to be conducted etc. In short, it will be a written legal document that is valid in the eyes of law.
Protect your legal interests
He adds that most of the time, disputes arise when friends disagree on a business matter. This is why he states that no matter how deep or old your friendship maybe it is prudent for you to draft a partnership deed that will help you in a large way to protect your interests and the interests of the business as well.
Always take the help of qualified lawyers in the field
You need skilled and qualified lawyers in the field to aid and assist you. The language of the deed must be clear and leave no space for ambiguity. Remember when you enter into any kind of partnership the sole motive of all the people involved is to earn profits and conduct business. This is why you should never ignore the importance of drafting a legal partnership deed on the basis of ruining the sentiments of an old friend. Both of you should be practical and open to the idea that the deed should be created to protect your individual interests and the well-being of the business that you both are entering into. A business might have more than two partners and so it is crucial for you to have a clear and defined deed that protects the rights and interests of everyone legally.
Dan DeKoter counsels and guides his clients when it comes to the creation and the drafting of partnership deeds. He says that he takes the onus of explaining every detail to his clients so that they are safe and protected from any issue that may arise legally during the course of the business. Partnership deeds are legal documents that are valid and always enforceable in a court of law with success!