Business Partnership is one of the contracts that is specifically mentioned in the civil law and it is “combination of the rights of multiple owners in a single object with a distributed way.” Or that the business partnership is combining the shares of the partners, both cash and non-cash, for the purpose of profiting, according to the contract.
Types of Partnership
Two or more people make a contract to partner in business.
When a person wants to partner with another person or people, the first step is to draw up a contract; Because with a firm contract, the future direction of the partners’ behavior is determined and prevents future disputes between the partners.
Notes on the Text of the Contract
The Subject of the Partnership
The subject of the partnership must be specified in the contract, what the subject of the contract is for. For example, a partnership for construction or a partnership for buying and selling a car.
Level of Brought
In the text of the contract, the level of brought should be clearly specified. If a partner brings cash or something like a house or a car, it should be determined how much it is.
Determining the Amount of Profit and Loss
In the text, it should be mentioned how much is the profit of each partner and in case of loss, how much is the share of each partner in the loss and how is the method of payment.
Duration of Partnership
In the partnership of two or more people, it should be determined how long they are partners. If they do not predict a period of time, the parties can terminate the contract at any time, which makes the partnership unstable.
Designation of Referee
If the terms of the contract are unclear, they refer to the arbitrator to resolve the dispute.
Managing the Company
In the partnership agreement, one or more people are specified to manage the company. If one person is elected, any decision within his/her powers will be implemented. If there are several people, the principle is that they cannot make a decision individually.
Damage Caused to the Company’s Property Despite the Permission to Manage It
The person who is responsible for managing the property can do whatever is necessary to manage the property, and in case of damage, the person is not the guarantor of the damage.
Damage Caused to the Company’s Property in Case of Non-Permission
According to Article 582 of the Civil Code, a partner who seizes property without permission or outside the limits of permission is a guarantor. According to this article, it is not necessary to prove infringement and the absence of permission in the contract is enough to prove it. For example, a person in a company takes a service car out for work without permission and the car breaks down, the person is responsible for compensation.
Division of Common Property between Partners
According to Article 589 of the Civil Code, each of the partners can request the division of the common property at any time, unless the division is prohibited or the partners have agreed not to divide the property. If there are more than two partners and one or more people want to divide the common property, the division will be done only for those who want division.
Up To Sum
As mentioned, partnership has many advantages, especially the current economic conditions that do not allow people to do business alone due to the heavy costs. If we are thinking about partnership in business, it is better to do it with complete respect for partnership rules. If we do not have enough expertise in this field, consult a lawyer.