Partnership Agreement & Dispute Resolution

Partnership Agreement & Dispute Resolution

Introduction of Partnership Agreement

A partnership agreement includes a formal contract between two or more persons in a joint business. The partners, however, mutually agree to invest their funds as well as talent and share the profit and losses of the particular enterprise. As a matter of fact, the first component is the contract among the partners. However, this contract can either be written or oral. On the other hand, the implied or perceived contract is the creation of certain conducts. This happens when a person considers a certain portion of profits from an enterprise or business, the receipt of such profit, can be termed as the evidence of partnership between the said persons (Morse, 2010).

Moreover, if the receipts are of repayment of debt, such as annuity, wages or rent, such transactions can be classified as “protected relationships” and are not protected under the legal blanket. Whenever, there arise a circumstance as to test the specificity of partnership agreement, in terms of whether it was formed or not, certain factors are taken into consideration. One factor is the intent to establish a partnership, which is the intent of parties involved. This is very crucial facts in determining the very existence of such an agreement.

Facts of the Case

In this particular case, the problem is related to the dispute among the partners. As a matter of fact, there is not written or formal document that give a concrete evidence of the terms and conditions accepted by each of the party involved. However, this also fall under the category of partnership agreement yet is not recommended by most of the legal experts to have an implied contract. At the time of the inception of the contract, the partners agreed on a common agenda as the ...