When it comes to family matters, it`s important to have clear agreements in place to avoid misunderstandings and conflict in the future. If you`re entering into a partnership, joint venture, or any other kind of business arrangement with a family member, it`s a good idea to put everything in writing and have both parties sign a letter of agreement.
A family member agreement is a legally binding document that outlines all of the details of your partnership, including the responsibilities and obligations of each party, the duration of the agreement, and any other important terms and conditions. This document can be used to resolve any disputes that arise in the future and can give all parties involved peace of mind.
Here`s a sample letter of agreement between family members that you can use as a template for your own agreement:
Dear [Name],
We, [Name 1] and [Name 2], hereby agree to enter into a partnership for the purpose of [description of partnership]. This partnership will begin on [date] and will continue until [date].
During the partnership, [Name 1] will be responsible for [responsibilities of Name 1], while [Name 2] will be responsible for [responsibilities of Name 2]. Both parties agree to work together in good faith and to make decisions that are in the best interest of the partnership.
The profits and losses of the partnership will be distributed equally between the parties. Any money spent on behalf of the partnership must be approved by both parties before it is spent.
Either party may terminate this agreement at any time by providing written notice to the other party. If this agreement is terminated, all profits and losses up until that point will be divided equally between the parties.
This letter of agreement represents the entire agreement between the parties and supersedes all prior negotiations and understandings between the parties. This agreement may only be amended or modified in writing and signed by both parties.
Sincerely,
[Name 1] [Name 2]
By signing below, both parties agree to the terms of this letter of agreement:
[Signatures of Name 1 and Name 2]
If you`re entering into a partnership with a family member, it`s always a good idea to have a letter of agreement in place. This can help you avoid misunderstandings or conflicts down the road and can give all parties involved peace of mind. Use this sample letter of agreement between family members as a starting point for creating your own agreement.