Sample Oregon Partnership Agreement
Benefits of The Partnership Agreement in Oregon
If you are in planning to set up a partnership business in Oregon, you need to gather all the essential documentation, including licenses and registration documents for your partnership. Besides these official documents, we recommend preparing a partnership agreement. The partnership agreement is necessary for outlining your business’ structure, while also offering guidance on steps to be implemented when the goals of the partnership are attained or when the partners determine that the partnership business has come to its end.
A partnership agreement, also called a partnership contract, a general partnership agreement, or a general partnership agreement, refers to a legally binding legal instrument that outlines the roles, rules, and the relationships of the partners to each other and to the partnership. The partnership agreement could be thought of as the playbook through which the partnership’s ball keeps rolling. Thanks to the partnership agreement in Oregon, businesses run on specific guidelines/ rules; hence the prevention/ avoidance of disputes or easy dispute resolution when the disputes arise.
The good news is that you get to enjoy the benefits of the partnership contract, thanks since you can prepare the document with ease at your office. The ease with which you can prepare this agreement comes from the free Oregon partnership agreement form. This form is a template with pre-written clauses that you can tweak and personalize to match the needs of your company easily. The legal partnership agreement sample features all the important segments you need to create an enforceable contract that matches the needs of your business. The partnership contract is downloadable, editable, and easy to work with.
Reasons Why You Need A Partnership Contract
The contract reduces the impact of disputes
The most important reason why you may want to create a legally binding agreement between you and your partners is to ensure that internal squabbles between the partners and the issues arising between the partners and the partnership are resolved before they get out of hand. The partnership contract does this by providing written evidence of what was agreed on before, preventing unreasonable disputes.
In the event of a dispute, the written agreement comes in handy by removing all/ any reason for conjecture or assumptions. The partnership agreement sets the record straight on matters like the intention of the partners to form the partnership, the agreed intention to have joint ownership of the debts and assets of the partnership, and the procedures for splitting the profits. The agreement further outlines the methods of dispute resolution to be adopted, as well as the agreed terms for the dissolution or the continuation of the partnership.
Regarding dispute resolution, the agreement would also outline the steps for dispute resolution to be initiated. What this means is that the agreement specifies whether a mediator or an arbitrator would be chosen to help resolve issues.
Avoidance of Unwanted Dissolution of The Partnership
At law, a partnership would be dissolved if a partner dies, if a partner becomes bankrupt or insolvent, upon the expiry of the partnership’s, and the partnership could also be dissolved when a partner issues a notice showing their intentions of dissolving the partnership.
The other reason for the dissolution of the partnership would be an agreement to end the partnership when it becomes apparent that it would be unlawful for one of the partners to actively engage in the partnership business. A partner losing the right to own the business legally could also be a reason for the dissolution of the partnership. However, even with these reasons, a partnership’s dissolution would follow the terms outlined in the agreement. At the end of the day, whether the partnership business lives on after a partner loses the ability to run the business legally or if there is contention about the ownership will depend on what is instituted in the partnership agreement. What all that means is that the partnership agreement had the power to control how long the partnership lasts, even when some of the partners want out. On the same note, the agreement would stipulate what would happen when one partner leaves, and how a new partner would be brought in, and also the terms they have to meet.
It takes Precedence to The Courts
The other reason why you may want to create a partnership agreement today is that the agreement would automatically take precedence to any court action. Generally, the absence of the agreement means that the court has to act in the event of a dispute or disagreement, however, if you have an agreement written, the conditions laid out in the agreement would take precedence, and the courts could only come in if the agreement offers inconclusive advice or if the agreement recommends the court as the last resort.
So, if you are interested in creating your partnership agreement in Eugene, Bend, Salem, Portland, Medford, Corvallis Beaverton, Hillsboro, or any other city in Oregon, you may want to get started with our partnership agreement forms today.
OR Partnership Agreement
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