Legal Question in Business Law in California

No.

Absolutely not! On the one hand, there are certain things that SHOULD be covered in any well-designed partnership agreement that will do a good job for the partners in both fair weather and foul. On the other hand, very, very little is NECESSARY to create a partnership agreement that will be recognized and enforced by California courts. Among other things, there is no requirement that a partnership agreement be in writing. Furthermore, much to a lot of people's surprise, the partnership agreement doesn't even have to be expressed orally! Two or more people who go into business together can create a partnership, and a discernible agreement, simply by conduct. So, the partnership contract can be written, oral, or implied from conduct. All equally enforceable in theory. Of course, it is much easier to enforce any contract when its terms are set forth in a clear writing, signed by the parties. But with partnerships, the partners can find themselves legally in a partnership even though they had no intention of forming a partnership, if the facts show that's what they unintentionally did.

Any lawyer will tell you a partnership agreement should be tailored to the facts and circumstances of the business arrangement between the partners. It should also provide an exit strategy, compensation, etc. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

No, but if it doesn't adequately cover all the issues necessary, you'll end up in litigation over disputes, or in tax trouble. Do it right, now, to avoid spending lots of money later to solve the problems you create. If you're in SoCal, and if you're serious about getting legal help, feel free to contact me.