THE PARTNERSHIP AGREEMENT - 4 Provision for withdrawals of...

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THE PARTNERSHIP AGREEMENT Ideally, the agreement of two or more individuals to form a partnership should be expressed in writing. This written contract is often called the partnership agreement or articles of co-partnership . The partnership agreement contains such basic information as the name and principal location of the firm, the purpose of the business, and date of inception. In addition, relationships among the partners should be specified, such as: 1. Names and capital contributions of partners. 2. Rights and duties of partners. 3. Basis for sharing net income or net loss.
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Unformatted text preview: 4. Provision for withdrawals of assets. 5. Procedures for submitting disputes to arbitration. 6. Procedures for the withdrawal or addition of a partner. 7. Rights and duties of surviving partners in the event of a partner’s death. We cannot overemphasize the importance of a written contract. The agreement should be drawn with care and should attempt to anticipate all possible situations, contingencies, and disagreements. The help of a lawyer is highly desirable in preparing the agreement....
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