The Danger of a Handshake Deal
Legal Clarity Builds Strong Partnerships
Relying on a verbal understanding is the single greatest risk in any business partnership. When disagreements arise—and they inevitably do—the lack of a written agreement leads to “he said, she said” arguments, costly disputes, and the potential destruction of the business and the personal relationship. A formal agreement is your essential roadmap and rulebook.
A properly drafted agreement defines ownership, profit sharing, and dispute processes, protecting all parties from misunderstandings. Whether you’re forming a business, professional practice, or joint venture, our attorneys ensure every clause is clear, enforceable, and fair.
We Assist With:
- Partnership Agreements: For businesses established as a traditional partnership, this is the core governing document.
- Association Agreements (for Close Corporations): This functions like a shareholder agreement for the members of a Close Corporation (CC), and is critical for smooth operation.
- Joint Venture (JV) Agreements: For when two or more businesses collaborate on a specific project, defining the scope, contributions, and profit-sharing for that venture.Association constitutions and bylaws
- Expense-sharing and revenue allocation agreements
- Confidentiality and non-compete clauses
- Dissolution and dispute resolution frameworks
- Explore Commercial Contracts →
- Strategic & Proactive: We help you anticipate future challenges and build the solutions directly into your agreement from day one.
- Tailored to Your Business: We draft agreements that reflect the unique dynamics of your partnership.
- Dispute Prevention Focus: Our primary goal is to create a document that prevents costly and damaging disputes between partners.
- Decades of Commercial Experience: We draw on over 30 years of experience in structuring all forms of business relationships.
- Experienced Commercial Lawyers: Proven expertise in business structuring.
- Mediation Accreditation: Qualified under the Gauteng directive for partnership dispute resolution.
- Personalised Approach: Every agreement tailored to your business dynamics.
- Balanced Perspective: Protecting both financial and relational outcomes.
- Purpose & Duration – Defines business scope and continuity.
- Capital Contribution – Clarifies each partner’s investment or resources.
- Profit & Loss Distribution – Establishes fair financial sharing models.
- Decision-Making Process – Outlines voting rights and authority.
- Roles & Responsibilities – Prevents duplication or neglect.
- Exit Strategy & Dissolution – Plans for retirement, sale, or withdrawal.
- Dispute Resolution – Mandatory mediation clause per the Gauteng High Court directive.
Read About Mandatory Mediation →
- Failing to Plan for the End: Causes uncertainty and financial strain. The most critical function of a partnership agreement is to define what happens when a partner wants to leave, retires, becomes disabled, or passes away.
- Ambiguous Roles or Decision-Making Rules and Rights: Results in management paralysis. Not clearly defining how major decisions are made is a primary cause of deadlock and paralysis in a business.
- Ignoring Capital Contributions: The agreement must clearly state what happens if the business needs more capital in the future and one partner is unable or unwilling to contribute.
- Using a Generic Template: A template cannot account for the unique contributions, personalities, and goals of your specific partnership.
- No Written Agreement – Verbal partnerships are legally risky and unenforceable.
- Vague Profit Sharing Terms – Leads to tension and litigation.
- Skipping Mediation Clauses – The court now expects mediation before litigation under the High Court directive.
- Contributions (capital, assets, skills).
- Roles and Responsibilities.
- Decision-Making and Deadlock Mechanisms.
- Profit & Loss Distribution Formula.
- Dispute Resolution Process.
- Exit Strategy (Buy-Sell Clauses).
- Duties of Good Faith.
- Restraint of Trade Clauses.
- Profit and loss disagreements
- Partner exit or buyout disputes
- Breach of fiduciary duty
- Dissolution or restructuring negotiations
- Explore Mediation & Arbitration →
Clear Answers for Business Partners
Partnership & Association FAQs
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