Entering,into,partnership,agre law Entering into a partnership agreement in Canada
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Business is mostdefinitely the sphere that walks hand in hand with the law. The traditions oftrading that finally evolved into modern business require an enormous number oflaws, amendments and acts to regulate all the processes and business relations.In this article we will take a look at partnership agreement and related legalissues. Every partnership agreement is usually based on trust between thepartners, still every experienced businessman knows that people can change andthe interests of partners can change and of course the business situation ingeneral can change. So a properly drafted partnership agreement that covers allthe possible conflict situations is a must for any partnership. While some peoplemay view it as a document that shows a lack of trust or even an insult it isactually more of a serious basis for the agreement. Needless to say that only aproperly drafted partnership agreement that was done by an experienced lawyerwill really provide solutions for all the possible conflict situations thatcould arise. As for the lawyer of course you will need a lawyer with experiencein partnership agreements. It is also great if the lawyer has businessexperience. Before you establish a partnership in Canada,you will need to meet three criteria: your proposal is for a Canadian business("every trade, occupation, or profession"); the partnership will haveprofits (no charity allowed) and you intend to carry on business in Canada andshare the profits. When drafting apartnership agreement you need to carefully examine four main issues that canbe described as four simple questions:How will we namethe partnership?How will wemanage the partnership?How will wedivide the profits?How will we endthe partnership? First thing thatyou need to do is choosing the name of the partnership agreement. The secondthing is to check if the name is not yet registered under the Business NamesAct. Very often people tend to name partnerships after their last names andthere is a big possibility that there already is a registered partnership underthese two last names. Choosing the partners (there can me more than twopartners actually) is the next step, closely followed by the general definitionof the business that the partners will be involved in. It is also important tospecify if the partnership is closed or open for exiting or inviting newpartners. Like in every business flexibility is the most important thing for agrowing business. The next important step and issue is defining the managementrules of the partnership. Voting, decisions, management, contributions andeverything related is defined under the second question. Needless to say thatthis part needs the most attention and time, if the parties are interested in ahealthy well established business partnership. The next two big questions are howto divide the profits and how to end the agreement, they basically grow out ofthe rules established earlier. The last part also must hold possible resolutionsfor situations when one of the partners dies for example. For moreinformation regarding QuebecLawyers, Alberta Lawyers, Montreal Lawyersand legal services please visit: www.lawyerahead.ca
Entering,into,partnership,agre