A contract between two or more company partners is known as a partnership agreement. The agreement outlines the partners' rights, obligations, and profit and loss allocation. Individuality doesn't need to be a person. A corporation or other commercial organization can be a partner as well. It is strongly recommended to proceed to the drafting of a written partnership contract and whose several clauses would allow to protect your activity during this contractual relation. Therefore, seeking the advice of a professional is necessary and a lawyer will be perfectly able to establish an agreement in which the risks related to these contracts are limited. In order to better understand the general outlines of these agreements
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Legally, this type of agreement is qualified as an innominate contract, which means that it is not governed by any legal text, i.e. there is no legal provision prescribing which mention must appear in the business partnership agreement. Nevertheless, during the execution, the obligations of the parties are subject to Singaporean law. The parties therefore remain relatively free in the drafting of their business partnership agreement, the only limit being the respect of public policy. Obviously, the business partnership agreement cannot cover illegal elements.
That being said, what this type of agreement provides for in practice revolves around the following elements:
| ➤ The duration of the business partnership |
| ➤ What the promotion is about, what kind of information will be promoted? Etc |
| ➤ A reminder of the general behavior that the parties must adopt during the execution of the business partnership agreement (mutual respect, good faith etc.) |
| ➤ The amount of the commission |
| ➤ The extent of the confidentiality |
| ➤ The prevention of any dispute (arbitration clause, choice of court clause) |