Contracts between partners

The aim of a partnership

The legal form of the partnership has been created in order for partners to cooperate within a corporation on the same level and with the same authority. This means that there does not exist a hierarchy between the partners and they work together, based on equal contribution, to become profitable.

Partnership agreement

Every partnership is based on an agreement between the partners in which they will agree on matters such as the contribution, the internal liability, the distribution of profits, etc. This agreement is the so-called partnership agreement.

Liability

The most important difference between the shared partnership and the general partnership concerns the liability. With a shared partnership all partners 

are liable for their contribution, whereas in a general partnership every partner can be held personally liable for the whole debt of the debt.

Contribution of the partners

The contribution of the partners can be very divers. It can be financially, in assets or the use of them and labour. Mostly the contribution consists of a combination. An example of this can be a partnership of two former self-employed persons. They decide to form a partnership in which case they will have to contribute at least the following things to start the corporation:

1. the inventory of their former sole proprietorships’;
2. their client bases / networks;
3. your “work in progress”;
4. potential trading stocks;
5. their debtors;
6. a starting capital and/or (future) labour.

More information

Do you want more information on partnerships or related liability? Contact one of our attorneys.