Partnership Agreement:

A partnership is a form of business structure. A partnership agreement is an agreement made by two or more people who form a business partnership. Partnership agreements go by different names depending on the situation and the industry in which they are built.

You may know the partnership agreements such as:

• Co-operation Documents
• Business Partnership Agreement
• Creation of a Partnership Agreement
• Development of a Partnership Agreement
• General Partnership Agreement
• Partnership Agreement

There are several reasons why a partner leaves the business. It could be for a better balance of work and family responsibilities or a partner developing new interests. People change over time and may not maintain the same level of enthusiasm for business as they did in the beginning.

Various reasons for the dissolution of the partnership include:

• Retirement
• Divorce
• Death of a family member
• Job changes
• Disability
• Differences in perspective or management style
• Loss of trust or animosity between partners
• Travel conditions
• Outstanding goods
• Debts
• A performance agreement or by-laws that allow for the required movement

For unauthorized departure or when the partnership dissolution was unplanned, we can assist you or your partners during the transition. If a partner in the first partnership takes the assets of that relationship specifically, they should report to all partners in the first partnership the amount of what they are taking. It is quite common for one partner to leave a partnership, and for the remaining partners to seek to continue running the business using the assets of the first partnership (including any IP or interest). However, the fact that the majority of partners wish to continue the business does not mean that they have exclusive rights to the assets of the original partnership.

Cooperation agreements are a necessary contract for any technical partnership. They help protect all of their financial partners and reduce any potential conflicts throughout the business life. Contact us to give you confidence that your partnership agreement fully covers the partnership’s terms.