WHAT IS A PARTNERSHIP AGREEMENT IN CAMEROON?
A partnership can be formed orally or in writing by signing a partnership agreement to stipulate the relationship between the parties to the agreement. A Partnership is a legal contract that contains the terms and conditions that govern the way the partnership will be operated between parties involved in starting a partnership-structured business for the avoidance of any conflict between the partners. The law can presume there is an existence of a partnership once the essential elements of a partnership are present in the signing of a partnership agreement in Cameroon.
WHAT TO CONSIDER IN DRAFTING A PARTNERSHIP AGREEMENT IN CAMEROON
The question is what should businessmen consider in drafting and signing a Partnership Agreement in Cameroon? Here’s a list of some key items you should definitely think about before signing a partnership agreement.
- In drafting a partnership agreement in Cameroon, make sure you clearly lay out each partner’s contribution by ascertaining how much each partner will contribute to start the business and what will each partner’s responsibilities be for future needs.
- Before signing a Partnership Agreement in Cameroon ensure the partnership agreement detail how the partners will split and distribute business profit so as to sustain a comfortable life
- Before signing a Partnership agreement in Cameroon, partners should agree on the day –day management of the partnership. By setting up a decision-making structure that everyone understands and has agreed to, you’ll have the foundation for a more friction-free business.
- It is common for partnerships to continue operations for an unspecified period of time. Still, there are instances where a business is designed to dissolve or end after reaching a specific milestone or a certain number of years. In drafting a partnership agreement, parties should include this information.
- The most common conflicts in signing a Partnership Agreement in Cameroon arise due to challenges with decision-making between partners. In drafting a partnership agreement ensure terms regarding the decision-making process are laid out expressly.
- Before signing a partnership agreement in Cameroon, endeavor to include the steps to be legally taken to end the partnership and the governing laws.
- In summary, partners should open an account in the name of the partnership, appoint an accountant, decide on the grounds for the expulsion of a partner, and get legal advice on partnership in Cameroon, especially in case a partner dies.
DISSOLUTION OF PARTNERSHIP AGREEMENT IN CAMEROON
A partnership may be determined via any of the following ways;
- A partnership agreement in Cameroon can be dissolved either by the effluxion of the fixed term or the conclusion of the specific undertaking or venture.
- Where there is no express term of the agreement, the partnership agreement in Cameroon can be dissolved by any partner giving appropriate notice to others of his intention to dissolve the partnership.
- A partnership agreement in Cameroon can be dissolved because of bankruptcy or the death of one of the partners.
- A partnership agreement in Cameroon can be dissolved on an application by a partner to the court by summons, the court may decree a dissolution of the partnership in the following cases;
- where a partner becomes permanently incapable of performing his or her part of the partnership agreement;
- where a partner is adjudged to be a lunatic;
- when the partner willfully commits a breach of the partnership agreement and
- When in the opinion of the court, it is just and equitable to dissolve the partnership agreement in Cameroon
In conclusion, we strongly suggest interested business partners get professional legal advice on signing a Partnership Agreement in Cameroon. The legal practitioner will ensure a very detailed agreement is developed that leaves no shades of gray to aid each party understands the conditions and requirements.
Article by Barr. Mafany Victor Ngando
“The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance”