Entrepreneurs engaging in for-profit joint ventures can protect their business interests by executing a partnership agreement. These contracts outline the rights and responsibilities each person has to the company and serve as the controlling authority governing any disputes that arise between partners. Working with a Georgia partnership agreements lawyer to draft or negotiate a contract with the other members of your business could be advantageous for your company.
Based on the type of partnership you are in and the kind of business you conduct, an experienced business formation lawyer can draft or negotiate contract terms that meet your particular needs. A legal professional can also review an existing agreement between you and your partners and defend your interests in any dispute requiring litigation.
Georgia law generally permits adults and business entities to form partnerships and execute partnership agreements that control how their legal relationships operate. These types of contracts can be used with individuals in general, limited, or limited liability partnerships.
If one or more partners lack to legal capacity to enter into a binding contract at the time of its execution, a court may declare the partnership agreement void. Under Official Georgia Code Annotated §13-3-24, Georgia courts can void partnership agreements executed with adults with intellectual disabilities and mental infirmities.
The purpose of partnership agreements is to establish and safeguard owners’ rights to the business, so these contracts must be enforceable. An attorney can assess an individual’s legal status and inform them of situations in which a court may void their partnership contract.
Having partnership agreements in place provide businesses with certain advantages, especially if unexpected issues arise. Properly drafted contracts can give the partners concrete guidance concerning issues such as:
These provisions can give partners the knowledge they need to meaningfully participate in the company. These agreements can also account for unexpected events that may occur in the future, including one person leaving the company or becoming seriously ill.
Partnership agreements may govern how and when members transfer their interests in the company, buyout another owner, or dissolve the working relationship altogether. By anticipating future disputes, these contracts may limit the need for partners to litigate disagreements in court. An experienced partnership agreements lawyer can draft a contract that fits the business’ needs and accounts for future events.
Even if business partners execute an agreement, disputes resulting in litigation may arise. For example, when a partner decides to leave the company, the parties to the partnership agreement may disagree on the interpretation of the contract provision determining the value of that person’s ownership interest in the business. A seasoned attorney can review the partnership agreement, develop a litigation strategy, and defend an individual’s contractual rights in court.
If you are working on a joint business venture, speaking with a Georgia partnership agreements lawyer can help you protect your rights in future disputes. An attorney can explain the benefits of executing a binding agreement on your behalf.