Uniform Partnership Act & the Development of "Agent" Relationships Among Partnership Businesses

With the economy in a state of flux, many individuals are considering the start of their own business in hopes of improving family income and family financial outlooks. If you are considering a business, you may want to consider a partnership arrangement.

A partnership, in terms of business, is usually established by voluntary contract between two or more individuals or entities. When developing a partnership with another person, you are essentially committing your finances, labor, skill and personal effects, to some extent, to the success or failure of the business. For this reason, it is important to find a partner that is just as committed and dedicated to the success of the program as you are.

As part of your partnership agreement, it is important to understand how the management and control of the business will be established. Because each individual is expected to become actively engaged in the business, each individual is, therefore, considered the agent of the others while acting in the scope of business services. This scope of acting as an "agent" for others is important because if you choose an individual who is not committed or who may not be responsible in business affairs, that person may make poor decisions when acting as the "agent" for you.

Under the Uniform Partnership Act, any disputes you may have with regard to your partnership agreement can be addressed in a court of law. While the Act does not outline every possible scenario you may encounter, it does address issues of tort law, contract law, statutory law and common law as it pertains to a partnership agreement. Before agreeing to a partnership, be certain you are familiar with the risks and liabilities you may encounter and seek the advice of an attorney who can best manage your risk should a dispute arise.