Under the partnership agreement, individuals commit to what each partner will bring to the company. The partners may agree to contribute capital to the company in the form of a cash contribution to cover start-up costs or capital contributions, and the services or goods may be pledged under the partnership agreement. As a rule, these contributions determine the percentage of ownership that each partner has in the company and, as such, they are important conditions in the partnership contract. If the partners do not agree, alternative dispute resolution options may be dictated by a partnership agreement as an alternative to litigation. Mediation is one of those options in which the process brings the parties to the dispute together to agree on the issues at stake. The final sections of the agreement should deal with transfers of ownership and include general provisions found in most contacts, also known as boilers. The transfer of ownership is important; If a partner sells their interests to someone who does not have an entrepreneurial spirit, the whole operation could suffer. Part of the agreement should deal with the circumstances in which a partner may transfer its interests; Often, the agreement requires the partner to first offer to sell its stake in the partnership itself. Since the articles of association are a contract between the partners, they should contain general provisions that are important for other agreements, including termination provisions and choice of law, which means which jurisdictional laws apply in the event of a dispute. A non-disclosure agreement is designed to keep sensitive business information, including trade secrets, confidential. These agreements can and often should be used whenever confidential information is disclosed. For more information on terminating business partnerships in Georgia, see “My partner wants to leave – now what?” The first sections of the partnership agreement include basic information such as the name of the partnership, its name “do business as” (if applicable), the names of each initial partner, the type of partnership and the duration of the partnership. The type of partnership is crucial.
Complementary commercial companies allow equal management and profit rights between partners. In contrast, limited partnerships are two types of partners – general partners who manage the company and are personally liable for their debts and obligations, and limited partners, who are usually investors and are not personally liable for debts and bonds. .