Insights Hub
Partnership Agreements & Disputes
How Ontario business partnerships are formed, what a partnership agreement should cover, and how disputes and exits are typically handled.
Going into business with a partner is, legally speaking, entering into an ongoing contractual relationship — one that Ontario's Partnerships Act will govern by default if the partners never put their own terms in writing.
This hub looks at what a partnership agreement should address, the disputes that most commonly arise between partners, and how a partnership can wind down in an orderly way when it's time to part ways.
Popular in Partnerships
More guides in this hub
Partnership Disputes in Ontario: Common Problems and Practical Next Steps
Why partnership disputes happen, the most common flashpoints, and how they're usually resolved.
Ending a Business Partnership in Ontario: Exit Planning and Dissolution
How a partnership can wind down in an orderly way, and what to plan for before that day comes.
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FAQ
Partnerships: frequently asked questions
Do we need a written partnership agreement if we already trust each other?
Trust doesn't prevent disagreements about scope, contribution, or exit terms down the road. A written agreement sets clear expectations before a dispute exists, when it's far easier to agree on fair terms.
What happens if partners never signed a written agreement?
Ontario's Partnerships Act supplies default rules — for example, profits and losses are generally shared equally regardless of each partner's contribution, unless the partners agreed otherwise.
Can one partner force the dissolution of a partnership?
It depends on the partnership agreement and the circumstances. Some agreements set out specific triggers and procedures for dissolution; without one, the default statutory rules and general legal principles apply.
What is a partner's fiduciary duty?
Partners generally owe each other duties of good faith and loyalty in the conduct of partnership business, which can affect how competing interests, opportunities and disclosures are expected to be handled.
Understand your agreement. Know your next step.
Ontario-wide, plain-English contract law information — built to help you make sense of your situation before you decide what to do next.