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Joint Venture/ Partnership. by paulo1979: 9:02am On Jul 18, 2015
Dear Friends.

I am about to decide to commence a partnership trading on import and export trade with a best and childhood friend who have lived in the USA for 20 years.

The investment capital ration of the partnership is
50/50 which we have all agreed perfectly. But my point of concern is that I woukdnt want the partnership to bring problem between us and as such would want to get my part of the business protected.

Kindly advice me on the sort of partnership agreements I must insist on in other to get my self well protected in case of any mis behaviour from this partner tomorrow.

Please I need your candid and professional advice contribution and even experience.

Thanks Paulo
Re: Joint Venture/ Partnership. by MistaHumble(m): 12:20pm On Aug 26, 2015
First of all you both need to register your company with the CAC. Your partnership agreement has nothing per say to do with the registration of of company with CAC and so its not guided by CAMA but by relevant partnership laws in its operating areas.

Before entering into partnership you must note this:
1. There must be a business which both parties have agreed to undertake and must be legal.

2. The business must be carried out in common by both partners.

3. The business must be profit oriented and both parties aim to share profit and loss.

4. The company could be registered with CAC but the partnership agreement is not documented by the CAC.

5. It is less formal to form.

When drafting a partnership agreement, the following has to be stated clearly:
1. Names of the partners.
2. The business involved.
3. The contributions of each partners.
4. Profit and loss sharing.
5. Remunerations.
6. Suspension and expulsion.
7. Admission of new partners.
8. Duration of partnership.
9. Dispute resolution.

In regards to dispute resolution, you should take note that partnership is a private business and requires a lot of privacy and confidentiality, hence the need for effective dispute resolution model that would keep the parties relationship in tact while dealing with the dispute. Where there is dispute between partners, Arbitration is much more advisable since the arbitral agreement itself is binding and decision made by the arbitral panel is private, final and binding.

I hope you can learn a lot from this and be rest assured that you only need a sound partnership agreement signed by both partners which when the above mentioned points are stated, can be binding between both parties and very useful for dispute resolution in the feature.

Feel free to contact me if you need further clarification and I will be honored to discuss with you.

1 Like

Re: Joint Venture/ Partnership. by Nobody: 10:17am On Jun 07, 2018
MistaHumble:
First of all you both need to register your company with the CAC. Your partnership agreement has nothing per say to do with the registration of of company with CAC and so its not guided by CAMA but by relevant partnership laws in its operating areas.

Before entering into partnership you must note this:
1. There must be a business which both parties have agreed to undertake and must be legal.

2. The business must be carried out in common by both partners.

3. The business must be profit oriented and both parties aim to share profit and loss.

4. The company could be registered with CAC but the partnership agreement is not documented by the CAC.

5. It is less formal to form.

When drafting a partnership agreement, the following has to be stated clearly:
1. Names of the partners.
2. The business involved.
3. The contributions of each partners.
4. Profit and loss sharing.
5. Remunerations.
6. Suspension and expulsion.
7. Admission of new partners.
8. Duration of partnership.
9. Dispute resolution.

In regards to dispute resolution, you should take note that partnership is a private business and requires a lot of privacy and confidentiality, hence the need for effective dispute resolution model that would keep the parties relationship in tact while dealing with the dispute. Where there is dispute between partners, Arbitration is much more advisable since the arbitral agreement itself is binding and decision made by the arbitral panel is private, final and binding.

I hope you can learn a lot from this and be rest assured that you only need a sound partnership agreement signed by both partners which when the above mentioned points are stated, can be binding between both parties and very useful for dispute resolution in the feature.

Feel free to contact me if you need further clarification and I will be honored to discuss with you.

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