Document background
The Operating Partnership Agreement is a crucial legal document used when establishing or formalizing a business partnership in Canada. It is particularly important as partnerships in Canada are governed by both federal and provincial legislation, requiring careful consideration of multiple jurisdictional requirements. This agreement is essential for businesses where two or more parties wish to conduct business together while clearly defining their rights, responsibilities, and obligations. The document typically includes detailed provisions for capital contributions, profit sharing, management structure, decision-making processes, dispute resolution, and exit strategies. An Operating Partnership Agreement is fundamental for protecting partners' interests, ensuring smooth business operations, and providing a clear framework for addressing various business scenarios, from routine operations to significant changes in partnership structure.
