Silent Partner Agreement Example

The agreement should also contain the exact date on which the partner made its contribution and a detailed description explaining the reason for the partner`s contribution. Another provision that should be covered in the silent partner agreement is what happens when more resources are needed from the silent company or the complementary partner. For example, if the company needs to acquire more assets or fund more research and development projects. After signing the agreement, both parties will be invested in the profits and losses of the company organization. But there are many things that could be wrong. Over time, you may find that the expectations you have for the business may differ from those your partners have for the same business. The letter of a partnership agreement can help resolve disputes that are known to arise from such a situation. As a partner, you will find that you will always agree on everything at the beginning of your entrepreneurial project. This may lead you to think that you do not need a draft written partnership agreement. If you`re setting up a new partnership or trying to involve new investors as silent partners in an existing business, a silent partnership agreement can help describe everyone`s interest in a legally binding document. . .

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