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.
Cari – this is great! I’m going to reffer my bull clients to this blog!
Cari….posted this link on steerplanet.com forum for “OUR PEOPLE”…..speaking from experience, if everyone would do this, life would be much simpler! Thanks!.
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.
Pingback: More Information On General Partnership Agreements for Cattle Producers | Food and Agriculture Law Blog