A handshake deal might feel like a quick, easy, and trustworthy way to seal a business partnership, but when it comes to your company’s future, relying on informal agreements can be a risky gamble. While good faith and integrity are essential in any partnership, a lack of clear written terms can leave you vulnerable to misunderstandings, disputes, and potentially costly lawsuits down the road. Whether you’re starting a new business or expanding your existing company, it’s crucial to have a formal partnership agreement in place to protect your interests. Here’s why a handshake deal could cost you big. UNDEFINED TERMS LEAD TO DISPUTES No matter how well you get along with your partners, if there is no written agreement to spell out expectations and terms, disputes can quickly escalate, sometimes to lawsuits. The lack of clarity could lead to questions about fair compensation, the process for ending the partnership, who’s responsible for what, proper conduct, and ownership rights. A simple agreement, signed by all involved parties, can quickly address these concerns. NO LEGAL PROTECTION EXISTS Without formal agreements, you also run a higher risk of legal problems and unclear liability. If something goes wrong, every partner might be held responsible for it, even if the damage was done by one person. One wrong move can bankrupt everyone. Additionally, without any specific parameters or separate legal identities for partners, everyone could be responsible for any debts of the partnership. Even if your partner acted in a manner that goes against what you discussed, if there is no legal, written framework to support that instruction, it does not matter. WORKING RELATIONSHIPS Partnership agreements establish work divisions and roles so everyone is clear on what is expected of them and who has the final say on important business decisions. Without this guiding document, it’s easy to step on each other’s toes or even duplicate work, wasting precious time and resources. Conflicts can arise, and this could cause confusion for your clients since people may have different ideas about how the business should operate. Put It in Writing — Not Just a Firm Handshake Why You Need a Written Partnership Agreement
Inspired by AllRecipes.com
Hearty Gnocchi Soup
Savory bacon and cheddar make this an easy favorite to whip up on cold nights.
Ingredients •
1 tbsp vegetable oil
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8 slices bacon, cooked and crumbled, divided 1 cup shredded cheddar cheese, divided
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1 medium onion, diced
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1/2 tsp celery seed
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4 cups vegetable or chicken broth
• 2 tbsp chopped chives • Salt and pepper, to taste
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16 oz fresh gnocchi
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1/2 cup half-and-half
Directions 1. Heat oil in a large pot over medium heat. Add onion and celery seed and cook until onion is soft and translucent, about 4 minutes. 2. Add broth to the pot and bring to a boil. Add gnocchi and cook for about 3 minutes, then stir in half-and-half and 1/2 of the bacon. 3. Remove from heat and add 3/4 cup cheese, then rest until thickened, about 5 minutes. 4. Top with remaining cheese, chives, and bacon as desired. INSPIRATION “Each day of our lives, we make deposits in the memory banks of our children.” —Charles R. Swindoll
Ready to protect your business and future? Contact Douglass & Runger today to help create a solid partnership agreement that keeps you covered.
901-388-5805 • 3
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