When embarking on a business venture, it is crucial to set out clear definitions of roles and relationships of all interested parties involved. This can be especially important when seeking to create a formal business partnership, since such an arrangement gives rise to special legal obligations between the partners (as well as legal implications in the partners’ dealings with others). As illustrated by the cases discussed in this blog, sometimes this can be a challenge. Perhaps individuals will be so busy in the whirlwind of starting up a business that they neglect to provide sufficiently certain terms in their agreements, or maybe the alleged partners were never of one mind to even become partners to begin with. Since such errors can have legal consequences; persons should ensure that, if they actually intend to operate as a partnership, they draft an agreement that unequivocally shows that this is how they want their business to be defined.
Written by Ty Schmit When embarking on a business venture, it is crucial to have clear definitions of roles and relationships of all interested parties involved in the venture. This […]