Legal Question in Business Law in India

Re: About Partnership Agreement

Firstofall the nature of business is relevant in connection with your proposed venture. If the venture is in the nature of a partnership then the partnership agreement is the edifice on which your future relationships will stand. On the contrary if you are proposing a corporate entity then you must get into a shareholders agreement with your friend. All possible safeguards and benefits proposed should form part of the SHA. Since you are risking your current job for the venture you must ensure that apart from the profit sharing you also draw a monthly salary for your manegerial efforts. Further you should also work out proper perks in the agreement itself. In case the operations result in emergence of any intellectual property there may be clauses to deal with the same. All negative covenants should be loaded evenly against both of you. If you are contributing any seed capital the same should be captured in the agreement. The modalities for drawal of salary and perks should also be clearly spelt out. The termination clauses should be evenly balanced and you should take care that the same are not loaded against you. These are some of the safeguards.

Re: About Partnership Agreement

Drafting a partnership agreement and to incorporate the clauses suitable to satisfy the interest of all the partners requires a thorough case study and to know the intention of the partner/partners. It is not a stereotyped document nor formats which can be adopted. In your case it is not clear with respect to your intentions and the type of business and other details/interests of yours. Hence, with the information which you have provided, is not sufficient to express any views unless a thorough case study is made. If you wish to have a clear view on the subject kindly call the contact number 55461484.

Re: About Partnership Agreement

you must enter into a partnership agreement and then proceed.

Re: About Partnership Agreement

First and the foremost is the nature of arrangement / contract that you intend to enter into with the other person. The necessary recitals should be in the form of 1] nature of business 2] parties to the contract 3] Specify the roles each of the parties will enact 4] The capital contribution of the parties 5] Salaries drawn 6] Let either of the part indemnify the other party against future losses and claims [Indemnity Clause] 7] Event of closing down the arrangement and how the profits and loss shall be shared. These are the imp., legalities to be addressed in any type of contract of arrangement apart from customising on a case-to-case basis and on requirements.

Re: About Partnership Agreement

You need to first understand exact nature of your venture with your friend. You then need to know nature of organisation propsoed therefor viz. either a partnership firm, a private limited company or some other organisation. You then need to know nature of your over all association in the venture. You had specified only two things viz. you quitting your present job and will be paid 50% profits - it is not sufficient to understand fully. Further, whatever you think should be balanced in favour of both the parties. Lastly, you need to know whether you have any dictating position in the venture as from your query it appears that entier investment is proposed by your friend.