A law partnership is a business entity formed by one or more lawyers to engage in the practice of law. The primary service provided by a law partnership is to advise clients about their legal rights and responsibilities, and to represent their clients in civil or criminal cases, business transactions and other matters in which legal assistance is sought.
A partnership is defined by the Uniform Partnership as a relationship created by the voluntary "association of two or more persons to carry on as co-owners of a business for profit." The people associated in this manner are called partners. A partner is the agent of the partnership. A partner is also the agent of each partner with respect to partnership matters. A partner is not an employee of the partnership. A partner is a co-owner of the business, including the assets of the business.
Oregon Law Partnership Agreement with Provisions for Terminating the Interest of a Partner — No Managing Partner In Oregon, a Law Partnership Agreement with provisions for terminating the interest of a partner is a legally binding contract that outlines the rights and responsibilities of partners in a law firm when there is no managing partner. This agreement ensures clear guidelines for terminating a partner's interest and establishes procedures for addressing such terminations. Here are some key provisions and types of Oregon Law Partnership Agreements that address the termination of a partner's interest. 1. Buyout Provision: This provision defines the process by which a partner's interest is bought out upon termination. It includes details such as how the buyout price is determined, payment terms, and the transfer of the terminated partner's ownership percentage to the remaining partners. 2. Voting Rights: Some Oregon Law Partnership Agreements specify that upon a partner's termination, their voting rights within the partnership cease. This ensures that the remaining partners have full control over the decision-making process without any influence from the terminated partner. 3. Non-compete Clause: This provision restricts a terminated partner from immediately starting a competing law firm or practicing law that directly competes with the partnership. It defines the geographic scope and duration of the non-compete agreement to protect the partnership's interests and client base. 4. Dissolution and Wind-up: In some cases, the termination of a partner's interest may lead to the dissolution of the entire law partnership. The partnership agreement can include provisions that outline the steps to wind up the partnership's affairs, such as resolving pending legal matters, distributing assets, and fulfilling any outstanding obligations. 5. Mediation or Arbitration Clause: To address any disputes arising from the termination of a partner's interest, an Oregon Law Partnership Agreement may include a provision requiring mediation or arbitration before resorting to litigation. This helps to resolve conflict efficiently and cost-effectively by involving a neutral third party. 6. Retirement and Retirement Benefits: If the termination of a partner's interest is due to retirement, the partnership agreement may define the process for the partner to transition out of the firm, including the distribution of retirement benefits and any continuing obligations or responsibilities. 7. Amendments and Governing Law: The partnership agreement should contain a provision that allows for amendments to its terms and specifies Oregon law as the governing law for any disputes related to the agreement. This ensures that the agreement remains up-to-date with evolving circumstances and provides a consistent legal framework for resolving disputes. Remember, the specific provisions and types of Oregon Law Partnership Agreements mentioned above may vary depending on the individual needs and preferences of the law firm. Consulting with an experienced attorney is crucial for drafting a comprehensive and legally sound partnership agreement that addresses the termination of a partner's interest in accordance with Oregon law.
