While the Coronavirus (COVID-19) was disrupting everyone’s lives, Palmer Lehman Sandberg worked to achieve a balance – continuing to take care of our clients’ legal needs, while protecting our clients, our employees, and our community (local and nationwide).

As Texas has begun to reopen, Palmer Lehman Sandberg has adjusted accordingly.

  • We are available for in-office meetings, with the following protections in place – while in our building and our office common areas (lobby, elevators, hallways, etc.), visitors must wear face coverings, and maintain social distancing (minimum 6’) as much as possible.
  • We continue telephone and video conferencing in place of face-to-face meetings, for those who prefer it.

As we continue to serve you, we wish everyone safety and good health as together we move forward through these uncertain times.

Please reach out to anyone at our firm via email or phone with any questions or concerns.

Email us

Providing Solutions

What should a partnership agreement contain?

| Aug 24, 2020 | Business Law And Litigation |

Businesses don’t have to be run by a single person, and partnerships are commonplace in Texas. But it’s important to minimize potential disputes in such partnerships by creating clear contractual documents rather than relying on “handshake deals.” Here are some elements that can contribute to strong and sustainable agreements:

Ownership.  Who owns what? Is the deal a 50-50 split, or does one party own controlling interest? Is a partner able to sell ownership without any input from the partner? What happens when a partner dies? Putting these elements and more into the partnership agreement could make things easier for everyone.

Profit distribution. These details should be defined clearly. All those involved in running a business want to earn profits. By detailing how profits are distributed and when payments are received, partners may be able to avoid disputes and concerns.

Decision-making powers and division of responsibility. Everyone needs to know who is in charge and who decides what. The failure to cover these points may lead to conflicting and ambiguous decisions. The same logic may apply to each partner’s responsibilities in the office. Perhaps one partner handles product purchases while the other deals with public affairs. An agreement that itemizes and clarifies these points could keep a partnership and the business on track.

Without these basic elements in place, partners could encounter significant disagreement. With a resolution process in place, the differences could be effectively handled. In worst-case scenarios, the partners might follow previously defined dissolution steps to avoid business litigation.

Drawing up contractual documents detailing procedures for partnership agreements and disputes could make things less stressful for all involved. The business might find itself on better footing as well. Meeting with an attorney at the outset may prove beneficial.

FindLaw Network