Most partner disputes that reach court don’t start with bad faith. They start with a contract that stayed silent on something it should have settled. Here are five clauses worth your time before you sign.
1. Shares and contributions
Define exactly what each partner contributes — cash, assets or work — and how non-cash contributions are valued.
2. Authority and decisions
Who signs? Which decisions need unanimity, and which a majority?
3. Profit and loss
Don’t assume they follow share ratios automatically. Write the rule down.
4. Partner exit
How does a partner sell their share? Who has first right of purchase? How is the price set?
5. Dispute resolution
Name the forum in advance: commercial court or arbitration, and its seat and language.
A clear contract won’t prevent disagreement, but it makes resolving it faster and less costly.
This article is for general awareness and is not legal advice. For your specific situation, request a consultation.
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