A simple business contract between friends protects the relationship by separating business and friendship.3 min Read Write down the roles you and your friend will play after starting the business. Also write down how you will handle this if, later, one or both of you decide you want to leave the store and how you will handle it if you have a big disagreement about how to do something. We hereby confirm and declare, in defiance of the laws of the Republic of the Philippines, the United States and État_ ___ Form a business partnership with your local business licensing office. This formally creates your partnership and makes it more enterprising than friendly. Sole proprietorships and partnerships do not have the same financial and legal protection as registered businesses, which means that you and your friend are personally responsible for the company`s finances. This requires a significant degree of mutual trust, so don`t let personal feelings influence their business finances. Consider hiring a neutral third party to oversee financial arrangements so they don`t cross the boundaries of business to the person and hurt your friendship. Commit to keeping your friendship and business partnership separate. Avoid talking business when you`re doing something together as friends. Don`t discuss business problems with mutual friends.
Agree to be honest and open in case of potential problems, and commit to having a neutral mediator help you solve business challenges that could threaten your friendship. Going to the store with a friend may seem like an ideal business. After all, we know each other well and we have a sense of mutual trust. However, the reality of running a small business, or even working on a short-term project, can sometimes even test the closest friendships. In order not to harm your friendship or business, develop a contract that defines the expectations, rights and duties of both parties. Agreements and contracts are not the same. An agreement is used to describe something that both parties agree on for something fundamental, like. B the agreement to walk together. This is not a legally enforceable agreement, as no consideration has been exchanged between the parties. Define the specific role that each of you will play in the company. If one of the parties feels that the workload is unfair, it can weigh on the friendship. Plan what a typical workday will look like and who is responsible for what tasks.
If you contribute to the business in cash, equipment, or other material assets, document it so that disagreements or misunderstandings don`t undermine your relationship. The contract should state how each of you will be paid and how much of your income will be returned to the company. A simple business contract between friends protects the relationship by separating business and friendship. The oral or written contract lists the obligations of each party with respect to the business and with each other. . . .