The partnership agreement from LegalZoom that fell apart in month three

A guy came into my office last year with a partnership agreement he got online for $200. Within 90 days, his partner had taken a loan against the business and there was nothing in the contract about it. Has anyone else seen these boilerplate forms cause real problems?

3 comments

3 Comments

brookeellis9d ago

Right, "nothing in the contract about it" is the EXACT problem with those cheap online forms. I've seen a guy lose a whole brand new pressure washing rig his partner took out a loan against because the generic agreement just said "business expenses" and nothing else. You NEED a real clause that says any loan over a certain dollar amount needs BOTH signatures or it's void.

robinp899d ago

Had a buddy lose half his fleet the same exact way. Painful lesson.

scott.olivia9d ago

Seen a guy lose his whole business to an unapproved loan because a generic form didn't cover it.