I was fascinated to learn that the turtledoves, found mainly in Africa, are known for being so close in love that you cannot pull them apart. Great for love, but not so great for partners in business; especially when the business is not going well.
When forming partnerships, whether that is with an individual or a business, remember that partners are fiscal agents of each other. Don't get involved unless you've tested and found the person and or company to be trustworthy, truthful and transparent. Partnerships are very easy to form, because they can simply be done orally. There are no national and or local filing requirements and the partners all parties bind the others. Partnerships are often used as a business structure when an international business is forming for trading, joint ventures or distributorships. This is because of the public perception. If one partner takes out a credit card in the partnership name and the other partners allow it, what is to keep them from purchasing a new car with it. The purchases look the same to the merchant.
When something goes wrong in the partnership, the question that we are asked is “how do you legally separate and end the business relationship.” It is in this situation that you will be very happy that a partnership agreement is in place. It could take some work exiting if it is not. Where there is no partnership agreement in place to explain exactly how partners act and exit, the best thing to do is to create the agreement. Creating an agreement when there is already a dispute will likely be difficult, but not impossible. Creating it verses going through arbitration and or litigation is most certainly easier.
In the Partnership trust, understanding and communication are key ingredients to a successful relationship.
Have a wonderful, safe and joyous holiday season…with the love of Two Turtle Doves!