A partnership agreement is a contract between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including: Percentages of ownership and distribution of profits and losses. So, what should businessmen consider in drafting a partnership agreement? Here’s a list of some key items you should definitely think about before signing a partnership agreement in Cameroon.
- In drafting a partnership agreement in Cameroon, make sure you clearly lay out each partner’s contribution by ascertaining how much each partner will contribute to start the business and what will each partner’s responsibilities be for future needs.
- Before signing a partnership agreement in Cameroon ensure the partnership agreement detail how the partners will split and distribute business profit so as to sustain a comfortable life
- Before signing a partnership agreement in Cameroon, partners should agree on the day –day management of the partnership. By setting up a decision-making structure that everyone understands and has agreed to, you’ll have the foundation for a more friction-free business.
- It is common for partnerships to continue operations for an unspecified period of time, but there are instances where a business is designed to dissolve or end after reaching a specific milestone or a certain number of years. In drafting a partnership agreement, parties should include this information.
- The most common conflicts in a partnership agreement in Cameroon arise due to challenges with decision making between partners. In drafting a partnership agreement ensure terms regarding the decision-making process are laid out expressly.
- Before signing a partnership agreement in Cameroon, endeavor to include the steps to be legally taken to end the partnership as well as the governing laws.
- In summary, partners should open an account in the name of the partnership, appoint an accountant, decide on the grounds of expulsion of a partner and get legal advice on partnership in Cameroon especially in case a partner dies.
In conclusion, we strongly suggest interested business partners to get professional legal advice on partnership agreement in Cameroon. The legal practitioner will ensure a very detailed agreement is developed that leaves no shades of gray to aid each party understands the conditions and requirements.
Article by Barr. Mafany Victor Ngando
“The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance”