Your Obligations As A Business Partner

Partners should share equal rights so do equal obligations

. Obligations must be detailed and must be put in black and white and duly signed by partners. Under the Uniform Partnership Act, each partner has the obligation to:

Contribute toward losses sustained by the partnership. Like a married couple, partners abide by each other through thick and thin; through gain and loss. It must be the creed the business partners must live by. Considering your that printing company has low profit for the past years and would likely go into bankruptcy, as partners, you both have the obligation to think of a solution that would benefit all concerns especially the employees. You may resort to venture into online printing for example, which is widely popular nowadays, to save the business. Or worst case scenario, you can decide to sell the company.

Work for the partnership without pay in the customary sense, but rather for a share of the profits. Partners in business dont count every task they have done for the company; but they think about how they will gain more profit. They dont usually rely on the salary per se if they have agreed on this, but on the profit of the company.

Submit to a majority vote, or arbitration, when differences arise on the conduct of affairs of the business. If your partner doesnt conform or have a different decision apart from yours, you need a panel or board that would decide what is best. Partners are individuals that have different tastes, views, and opinions on a certain matter. It is normal that sometimes partners dont agree with each other that sometimes result in irritation and conflicts. This is the downside of partnership. For example, if you are positive that your printing company will survive the setbacks but your partner wants to sell it, problems will certainly arise.

Give other partners any information known personally about partnership affairs. It is your obligation to orient your partner about the business tips, the dos and donts if you are already aware of it, especially when your partner is a novice in the entrepreneurial world. Be ready to tell your partner the pros and cons of partnership, or better yet, give your partner handouts about the business partnership to give him ideas on certain issues and concerns.

Account to the partnership for all the profits that come in from any partnership transaction, or from the use of the partnership property. Transparency is significant in all partnerships. For you to have a pattern of how a partnership works with regard to profit sharing, consult a legal officer. Usually they have a ready plot and pattern on partnership policies.

As you can see, the partnership relationship must rest on good faith and honest dealing. Be reminded that a partner has an obligation to other partners that is founded on trust and confidence.

The importance of trust and confidence in a partnership cannot be overstated. For example, any partner may bind the partnership to a deal without the knowledge of the other partners. This means that your partner could commit your partnership business to a costly action without your agreement. And the commitment would be legally binding. Your whole fortune, all your personal assets, could be put at risk without your knowledge or consent. For this reason, the interpersonal relationship among partners must be founded on complete honesty and trust. There can be no secrets in a partnership if its to be successful.

by: John Ray Daniels

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