Your Business Deserves To Thrive
Conflicts are going to happen, even in the most successful partnerships. As a partnership develops, some of the biggest struggles can be finding solutions to these conflicts. One of the reasons people shy away from partnerships is the possibility of disagreement. How do we put arrange things to make sure that the partnership minimizes the risk of disagreement and keeps…
Partnership agreements are rarely as simple as people think they are. I spent a lot of time working on partnership agreements. What I find interesting is a lot of people think partnership agreements are simple. Give me a standard partnership agreement. We’re just doing a normal partnership agreement. These are the types of statements I might hear when somebody’s calling…
How do you know if you should be engaging in a partnership? How do you determine if what you are doing makes sense? Discussions about partnerships can take a lot of time, and a partnership agreement means a large commitment of time, money, and energy. Indeed, it can even be a dangerous economic enterprise. What tells you whether you should…
I was recently given the interesting analogy that partnerships are like icebergs. You can see what is above, but what really matters is below the surface, because in an iceberg, there is a lot more ice below than above. In a partnership, there is a lot more below the surface than above the surface. There is much to think about…
We do a lot of work crafting partnership agreements. If you’ve been a frequent reader of our blogs, you’ll know it’s something we talk about often in length. But one of the keys to partnership agreements is to have an exit strategy. So often, when we have problems in partnerships, it’s because the partners have decided to go different directions…
In Cline v. Grelock, [1] the business partners were two-lifetime friends who started a towing business called American Asset Recovery, LLC (“AAR”) d/b/a Hound Dog Recovery. To start the business, Grelock and Cline personally guaranteed a bank loan for AAR to buy a motor vehicle for the business. The business did not succeed. It had significant debts and did not…
If you have been reading our blogs, you know that we write and speak often about countless issues involving business partnership, including the four Ds (death, disability, divorce, and disagreement). Although many business owners starting a new business may think it won’t happen to them, the truth of the matter is that businesses are certain to experience at least one…
In our previous post, Does Texas Hold a Partner Liable for a Partnership Debt, we discussed the Texas Supreme Court’s holding in American Star Energy and Minerals Corporation v. Stowers, [1] that a creditor cannot sue individual partners to satisfy a partnership debt until a judgment is passed against the partnership and goes unsatisfied for 90 days. There is a continuation of…
In American Star Energy and Minerals Corporation v. Stowers, [1] four partners formed a general partnership called S & J Investments (“S&J”) to invest in oil and gas properties. S & J contracted with American Star Energy and Minerals Corporation (“American”) to operate these properties. Later, American sued S & J for breach of contract, which resulted in a final judgment…
You might have seen in our previous blog series on general partnership, where we talked about what general partnership is and why it is vital for business owners to know about it. In essence, we wrote that, despite the advent of limited liability companies (LLCs), business owners frequently form a general partnership, oftentimes without even realizing it. Generally, partners in…