1. Partnerships Partnership Agreements, Ch. 26.2

2. Creation of a Partnership “Strong fences good neighbors make” Compared to a partnership The strong fence is the partnership agreement Partnership agreement - terms & conditions that partners agree to guide them in managing the partnership

3. Form & Content Best in explicit written form Statute of Frauds – requires writing signed by the party against whom enforcement is sought to make contract binding (1 year or longer) Partnership lasting longer than 1 year must have agreement in writing Signed by both Otherwise unenforceable

4. Form & Content If parties do not agree on specific length of time for partnership to continue, need not be in writing Partnership could be terminated within a year by: Death, bankruptcy or withdrawal

5. Optimal Form & Content Always put in writing Consult a lawyer Spell out specificsspecifics Help avoid costly controversies

6. Partnership Agreement Example: