Some Considerations for General Partnership Agreements

Rincker Law Food & Ag Law 4 Comments

Whether it is a partnership for a flush cow, a boar or a bull that is in a stud, or a family-owned agriculture enterprise, you are encouraged to get a partnership agreement in writing.  Even if you are going into business with someone you know and trust, a handshake won’t protect you if unexpected things go wrong.  Each state has “default rules” for partnerships when there is not a written agreement or the agreement is silent on certain terms.  To avoid surprises, agriculture producers should get the terms of the agreement in writing so a court will enforce the terms of the partnership that you decided on.

You are encouraged to hire a professional but if you choose to draft the agreement yourself consider including the following provisions:

1.  Names and addresses of the partners;

2.  Name of the partnership;

3.  Purpose of the partnership;

4.  Term of the partnership;

5.  Initial contribution of the partners;

6.  Additional contribution requirements;

7.  Assets of the partnership;

8.  Allocation and distribution of profits and losses;

9.  Duties of partners;

10.  Expenses of partnership;

11.  Management and control of business;

12.  Effect of a default;

13.  Amendments to partnership agreement;

14.  Effect of partner’s death or incapacity;

15.  Assignability of ownership interest;

16.  Arbitration, mediation, and/or forum selection clause; and

17.  Dissolution and winding up of the partnership.

As always, partnership law is state specific so if you are considering drafting a partnership agreement, make sure you consult an attorney licensed in your jurisdiction.

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Comments 4

  1. Cari….posted this link on forum for “OUR PEOPLE”…..speaking from experience, if everyone would do this, life would be much simpler! Thanks!.

  2. Thanks! I agree. I think it is really important to get agreements in writing. I know cattle folks do business with people they know and trust. But like any business, unexpected things happen outside of people’s control.

  3. Pingback: More Information On General Partnership Agreements for Cattle Producers | Food and Agriculture Law Blog

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