Can A Partnership Agreement Be Revised After It Is Already Signed In Florida?
A partnership agreement is the foundation of the commercial relationship between business partners. If a legal dispute arises, a Florida court will primarily look to the terms of the partnership agreement to determine each party’s rights and responsibilities. It is crucial that your partnership agreement is well-drafted and that it protects your best interests.
This raises an important question: Can you change the terms of an existing partnership agreement? The answer is ‘yes’—though it usually requires a negotiated agreement for an amendment. In this blog post, our Miami partnership dispute lawyer explains the key things to understand about revising a partnership agreement after it has already been signed.
Partnership Agreement: Amendment
A partnership agreement is a contract. Similar to other business contracts, it can be amended with an agreement of the parties. Simply put, a contract amendment allows parties to change an existing contract based on mutual assent. The core benefit of using an amendment is that it allows the initial contract (partnership agreement) to remain in place. You do not have to scrap the original partnership agreement and start over from scratch. Parties have the right to negotiate a contract amendment to revise the terms of their partnership agreement.
Best Practices for Contract Amendments (Partnership Agreement)
As a partnership agreement is the basis of your rights and obligations in regards to your business, it is imperative that it is properly drafted. Any contract amendment to a partnership agreement should also be reviewed by a legal professional. Here are four best practices for revising a partnership agreement through a contract amendment:
- Formalize It: A partnership agreement amendment should be formalized. It should be in writing and signed/dated by all parties.
- Clearly Reference the Partnership Agreement: For an amendment to be effective, it should clearly reference the initial contract. Make sure a partnership agreement amendment is attached to the initial agreement.
- Restate Amended Sections: A partnership agreement amendment should be comprehensive. To avoid any confusion, it is best to refrain from describing the section of the partnership agreement that is being revised. Instead, the sections of the partnership agreement that are being changed should be entirely re-written in the amendment.
- Be Careful With Major Changes (or Several Amendments): A contract amendment is not always the best way to revise a partnership agreement. It is a great option for certain types of changes. However, if the changes to the partnership agreement are substantial, it may be better to simply get rid of the old agreement and start fresh with an entirely new contract.
Contact Our South Florida Partnership Law Attorney for Legal Help
At Pike & Lustig, LLP, our Florida partnership lawyers are committed to providing solutions-focused legal services to clients. If you have any questions about revising a partnership agreement, we can help you understand your rights and options. Contact us now to arrange your completely confidential case review. We have offices in Miami, West Palm Beach, and Wellington.