Generic Partnership Agreement

EFFECTS OF A GENERIC PARTNERSHIP AGREEMENT

A generic / boilerplate partnership agreement can prove extremely dangerous, especially when the partners are operating under a false presumption that they have adequate legal protections. It is extremely unfortunate that far too many people, lawyers included, believe that a single form of partnership agreement, with some possible minor modifications, could ever satisfy all forms of collaborative business enterprise. Yet the harsh reality is that most collaborative situations would benefit greatly from addressing their unique requirements, as opposed to falling into the legal trap of utilizing a generic partnership or joint venture agreement.

There are several key variants of the partnership agreement, and yet there is significant reliance on a single form of partnership agreement. This is somewhat preposterous and in turn leads to all too many problems down the road. For the fact is that each of the primary variation of collaborative business ownership and operations demands its own specific variant of a partnership agreement, with individualized negotiation thereof, such that the partners (investors) are capable of realizing more from their investment in the partnership.

The harsh reality is that in using a generic / boilerplate partnership agreement, whether obtained off of the Internet or drafted by a lawyer who fails to recognize the importance of skilled and customized drafting, is that the partners unknowingly are extremely vulnerable to tragic legal and financial consequences. And one of the more heart-wrenching facts in these tragic scenarios is that many of the partners had committed so much to the partnership's success, that when they are blind-sided by the inadequacy of their generic partnership agreeement, the repurcussions can be quite devastating [hence the significance of attaining a properly prepared and customized partnership agreement].

For legal counsel as to your business partnership or joint venture, contact lawyer Christopher Neufeld with Neufeld Legal Professional Corporation at Chris@NeufeldLegal.com or 403-400-4092 (Calgary, Alberta) 416-887-9702 (Toronto, Ontario).