Entered Into A Partnership Agreement

Rules on the management of the departure of a partner following a death or cessation of activity should also be included in the agreement. These terms may include a purchase and sale agreement detailing the valuation process or require any partner to maintain a life insurance policy that designates the other partners as beneficiaries. Partners owe a fiduciary duty to the other and to the partnership. You cannot compete with the partnership by having a similar business in the same geographic area, and you cannot take advantage of opportunities that the partnership might want to pursue and you cannot act intentionally or recklessly in a way that harms the partnership. Even if your business partner is your best friend or spouse, I highly recommend that you receive all of this in writing…