10th July 2024 ❘ Legal News and Commentary
Agribusiness FAQs – Why have a written farming Partnership Agreement?
Agribusiness FAQs – Why have a written farming Partnership Agreement?
If you and your partners do not have a formal agreement, the Partnership Act 1890 dictates how certain issues will be resolved. This will almost inevitably mean that the position between you and your partners is not as you expected or intended. In the context of a fall out, it can be very difficult to reach an agreement between partners.
When bringing in new partners/the next generation in to the farming business, we always recommend putting a written farming partnership agreement in place for a number of reasons.
What may seem to be an unnecessary exercise/expense for a farming partnership business now, is likely to be invaluable going forward as it will set out terms dealing with all eventualities that life may throw at the partnership in the future.
A written partnership agreement will:
Regulate: | Prevent issues arising such as: |
|
|
If you’d like further advice on Agribusiness matters you can contact our Agribusiness team here.