There are many good reasons you would want a contract to be in writing, not just a verbal agreement. One reason is that depending on the subject of the agreement a legally binding contract can only be in writing.
It's said only two things are certain, death and taxes. Business partnerships, not so much. They are like marriages so they may last a lifetime or they may break up in less than a year. Though they start with the best of intentions and excitement for the future, they can end in circumstances that are not so positive.
Businesses can't just run on effort alone. They need money to survive and to be invested so the enterprise can grow in the future. Money can be raised in many ways, including going into debt or finding investors. When a partnership is involved there are many issues that can come up when a partner puts money into the business.
It's very easy and if you're in business with another person, you may, under the law, be acting as partners without realizing it. A partnership is one of many legal entities a business can operate under. It's a legal entity that could be created simply by the actions of the parties without those involved intending it to be created and without a written agreement or even a handshake.
If you own or manage a business and have a significant relationship with an individual or another business you should consider documenting that relationship through a contract. As trustworthy as you are and as positive a relationship you may have, protect your company's legal rights and interests with a written, properly executed contract not just a hand shake.
If your business is a partnership you and any other partners share ownership and responsibilities for running your company. Ideally you should have a well drafted partnership agreement that covers any number of potential issues the partners may face. One issue that may or may not be covered is what happens to a partner's interest in case he or she gets divorced.
When you're starting a business partnership, one of the most important documents you should have is a partnership agreement. A partnership agreement is a contract that establishes what your and your business partner's responsibilities, financial stakes, and general roles are in the business. While a partnership agreement is extremely important, many people who are just starting a business decide to use a partnership agreement template they find online. This DIY approach to drafting such an important document increases the likelihood of a partnership dispute arising and could jeopardize your business' long-term survival.
In the world of employment law, few topics arouse as much controversy and debate as non-compete agreements. Non-competes are ubiquitous in employment contracts, with even low-level employees sometimes being asked to sign contracts that limit what they can do after they leave the company. What may surprise many employers and employees is that many non-competes are almost completely unenforceable. Here's a brief look at who needs a non-compete agreement and when a non-compete clause has the best chance of being considered legally enforceable.