Securing the right sort of partner can be an important step for Manhattan business owners looking to expand their current enterprises. However, working out the subsequent partnership contract takes a bit of finesse to ensure the best possible outcome. To this end, Business Insider offers some helpful guidelines for successfully negotiating your partnership contract.
You and the other party involved in the negotiation are bound to have certain goals in mind. That’s why it’s recommended that you sit down with your potential partner and go over your requirements in detail. One of the most important items you can discuss involves how compensation will be handled in the event that your partnership dissolves. If your business entails distribution, discussions should also cover who will be responsible for what tasks.
Contract termination stipulations must also be outlined so as to prevent any breach of contract lawsuits from occurring. This entails spelling out what is expected of each party during the course of a business relationship as well as what violations could justify a termination of the partnership. For example, you are manufacturing a home product and you partner with someone who will handle the distribution of that product. You could set up a contract that establishes when the product will be delivered to the retailers. If the partner fails to meet that goal, then you have the right to terminate the relationship.
Once you’ve established common and individual goals, the next step is to commit those goals to a written outline to prevent miscommunication from occurring. Be sure to include items from your initial dialogue so that all involved are fully aware of what will be contained within the pending contract. Creating a written outline also allows you to work through any differences of opinion until both parties reach a mutually agreeable understanding.
The above information is only intended to provide guidance on the process of creating a partnership contract, and as a result It should not be taken as legal advice.