Should You Consult With an Attorney Before Signing a Partnership Agreement?
Are you preparing to form a business partnership in Florida? While not required by law, it is strongly recommended that you have a professionally drafted, written partnership agreement. You should always consult with an experienced business law attorney before signing a partnership agreement. In this article, you will find an overview of five key reasons why you should consult with a partnership attorney before signing a partnership agreement.
What is a Partnership Agreement?
A partnership agreement is a formal document that outlines the rights, responsibilities, and duties of each partner involved in a business partnership. Although Florida has laws in place for business partnerships, it is the agreement itself that serves as the primary legal framework that governs the operation of the partnership and helps in resolving any disputes that may arise.
What Issues are Addressed in Partnership Agreement?
What exactly goes into a partnership agreement will depend, in part, on the nature and structure of the specific business. With that being said, a partnership agreement typically addresses some common issues, including:
- The division of profits and losses;
- The contributions of each partner (which can include capital, assets, or skills);
- The management and decision-making processes within the partnership; and
- The procedures for admitting new partners; and
- The process for resolving partnership disputes.
Why Your Partnership Agreement Should Always Be Reviewed By an Attorney
Given the importance of a business partnership agreement, it is always a best practice to have the contract comprehensively reviewed by an experienced attorney before you sign it. Here are some notable reasons why you should have a partnership agreement reviewed by a lawyer:
- Legal Expertise: An attorney brings a wealth of knowledge and expertise to the table. Along with other things, they can ensure that you understand your rights and responsibilities. You do not want to sign a partnership agreement without a full understanding of the terms.
- Objective Review: Your lawyer can provide an objective review of the agreement, ensuring that it is fair, equitable, and in your best interests. In doing so, they can identify any potential issues that you might have overlooked.
- Dispute Prevention: By identifying ambiguous language or potential areas of conflict, an attorney can help prevent disputes among partners. Clear and precise language can eliminate misunderstandings that could otherwise escalate into costly legal battles.
- Comprehensive Protection: A business law attorney can ensure that all critical aspects of your partnership are addressed in the agreement, including profit sharing, decision-making processes, dispute resolution mechanisms, and much more.
Consult With Our Southeast Florida Partnership Law Attorney Today
At Pike & Lustig, LLP, we provide solutions-first advocacy to clients. If you have any questions about the review of a partnership agreement, our attorneys are here as a resource you can rely on. Contact us today for a confidential review and assessment of your case. With an office in Miami and another office in West Palm Beach, we handle partnership law representation all across South Florida.
