A partnership agreement is a legal document explaining in detail the terms and conditions of a working business relationship between partners. A partnership agreement outlines the parties’ duties, obligations, and contributions to a South Carolina partnership. A partnership agreement should cover all of the possible scenarios that a partnership could potentially face during the partnership’s lifespan. As a result, partnership agreements are frequently complicated and legal counsel is highly recommended in the process of drafting, negotiating, and reviewing a final version of the agreement.
The partnership agreement outlines the partners’ rights and responsibilities and covers how to go about a dissociation and dissolution of the partnership. In part, these provisions determine how partners can be taken out of the partnership and how assets and debts of the partnership would be distributed. If there is no partnership agreement, then South Carolina law and guidelines from the South Carolina Uniform Partnership Act will govern any dissolution.