Setting up a beneficial partnership agreement with another business is essential. However, it can be complicated to set up, since it offers plenty of opportunities for mistakes. These mistakes could end a partnership before it even begins, could become costly for all parties involved, or worse still, could lead to disputes that find some or all parties on the wrong side of commercial law. Because of this, partnership agreements should be drawn up with absolute care. Following these guidelines will help:
1. Set Clear Objectives
What is the partnership working towards? A partnership will always be more successful when all who are involved know exactly what they are working towards.
- What is the partnership working towards?
- Have clearly defined objectives
- Realistic goals
2. Be as Thorough and Clear as Possible
When it comes to business partnerships, the devil is in the details. Oversights and vague language can break a contract, open up spaces for loopholes, or even render many of its terms inapplicable.
- Be as clear as possible when setting out the terms of the contract
- Clearly define the dispute resolution process. How will problems be solved?
- Clarify all expectations. Does everyone know what they’re supposed to do?
3. Consult the Professionals
Setting up a partnership agreement correctly can be more complicated than it seems. There is a lot of legality behind how they govern the nature of partnerships, and mistakes in this regard can be devastating not only to the partnership but also to the parties involved.
For that reason, it’s always a wise choice to have a commercial law specialist have a look over the agreement for you to ensure that it meets the expectations of the law.
