5 things you should keep in mind before entering into a Partnership Agreement

A partnership is like a business marriage. There are many things that are needed to be understood and done right away. If there are discrepancies in the paperwork, there can be legal shock waves for years on end. This is why we have come up with 5 things to keep in mind when joining forces. 

1. Know the partner

While some people partner up with people they have known for years, some do not have this privilege. Often partners come out of nowhere. In such situations, everyone needs to follow their gut and go in with their right foot. It is good to know your partner for at least a year before getting into bed with them. If short of time, there is no problem with asking for some personality tests and exams. Some recommended tests are HEXACO and dark triad tests. They serve as deeper insights into a person’s mental functioning. 

2. 100% Transparency

Everything should be available on paper. There should be no stones left unturned. When partners are not transparent with each other, there tends to be a lot of legal battles. Everything should be addressed from in case of disputes what should happen to shares. 

3. Be on the same page

Often partnerships fall out because partners tend to not be on the same page. Whether it is about a key decision or the end goal of the company, it is very important for two partners to be on the same page. 

4. Dispute Resolution

Often in a business, a dispute is what tears a company apart. The reason a dispute falls through is because two partners are treated as equals. When the time comes of a dispute, there needs to be a procedure of how it will be tackled. 

5. Exit Procedure

In every business there comes a time when someone has to hang up their robe and walk away. In such a situation, many problems and questions rise. What happens to the partnership? Does the partner get the business as a whole? Does the reason for leaving matter? All these questions and queries need to be settled on paper. 

From the above points, you can understand the importance of the partnership agreement. It is best to have a team of lawyers to back everything up. With Doqfy, you know you are in the best possible hands. Our team of lawyers ensures that you do not have any problems on the legal side of your business. Everything is online and ensures all the norms to prevent the spread of COVID. With stellar services like Franking, E-stamping, and online archiving, Doqfy is one of the best online legal aids.