One of the most common questions lawyers receive is whether a debt can be recovered where there is no written agreement. This situation frequently arises between friends, family members, business associates, landlords, tenants, and even companies that have done business based on trust rather than formal documentation. The simple answer is yes. In many cases, it is possible to recover a debt even where there is no written agreement. However, the absence of a written contract can make proving the existence and terms of the debt more challenging. Understanding can you recover a debt without a written agreement in Nigeria is important if you have lent money, supplied goods, or provided services without signing a formal contract. Is a Written Agreement Always Required? No. Nigerian law recognises that not every valid agreement is reduced into writing. Many transactions are concluded orally or are evidenced by the conduct of the parties. However, when a dispute arises, the person claiming that money is owed must produce sufficient evidence to prove the claim before the court. A written agreement is one form of evidence, but it is not the only one. What Must You Prove? To succeed in a debt recovery claim, it is generally necessary to establish facts showing that: A loan, credit arrangement, or other transaction existed. The debtor received money, goods, or services. There was an obligation to pay. The debt remains unpaid. The amount claimed is ascertainable. The evidence required will depend on the facts of each case. What Evidence Can Be Used? Even without a written agreement, many forms of evidence may assist in proving a debt. These may include: Bank transfer records. Deposit slips. Payment receipts. Emails. WhatsApp or SMS conversations. Acknowledgements of the debt. Voice recordings, where lawfully obtained and admissible. Invoices. Delivery notes. Purchase orders. Witness testimony. Account statements. Part-payments made by the debtor. The stronger and more consistent the evidence, the easier it may be to establish the existence of the debt. Can WhatsApp Messages Be Used as Evidence? In appropriate circumstances, electronic communications such as WhatsApp messages, emails, or text messages may be relevant in proving that a debt exists. For example, messages in which a debtor: Admits owing money. Requests additional time to pay. Promises to pay. Confirms the amount outstanding. may support a creditor’s claim. Whether such communications are admissible and the weight the court will attach to them depend on the applicable rules of evidence and the facts of the particular case. What If the Debtor Denies the Debt? It is common for a debtor to deny that money is owed, especially where there is no written agreement. The court will examine all the available evidence rather than focusing on one document alone. This may include: The conduct of the parties. Payment history. Communications between them. Documentary evidence. Witness testimony. Any admissions made by the debtor. A denial by itself does not necessarily defeat a genuine claim. What If the Money Was Lent to a Friend or Family Member? Many loans between relatives or friends are based entirely on trust. Unfortunately, disputes sometimes arise when repayment is requested. Even in these situations, evidence such as bank transfers, messages acknowledging the loan, or witnesses who were aware of the transaction may assist in establishing the claim. Family relationships do not prevent legal rights from arising where a genuine debt exists. What If the Debt Relates to Goods or Services? Businesses often supply goods or render services without signing a detailed written contract. Where payment is not made, relevant evidence may include: Invoices. Delivery notes. Purchase orders. Job completion records. Correspondence. Payment history. Acceptance of the goods or services. The court will consider whether the available evidence establishes that payment is legally due. Can a Verbal Agreement Be Enforced? Yes, depending on the circumstances. An oral agreement is legally enforceable where the essential elements of a valid contract are present and there is sufficient evidence to prove its existence and terms. However, because oral agreements often lead to disputes about what was actually agreed, written contracts are generally preferable for important transactions. Steps to Take Before Going to Court Before commencing legal proceedings, you should consider: Gathering all available evidence. Calculating the exact amount owed. Keeping records of all communications. Sending a formal demand for payment through a lawyer where appropriate. Exploring negotiation or mediation if the circumstances permit. Many debt disputes are resolved after a properly drafted demand letter is served. What Should You Avoid? If someone owes you money, avoid: Threatening or harassing the debtor. Seizing the debtor’s property without lawful authority. Publishing defamatory statements about the debtor. Using violence or intimidation. Relying solely on verbal accusations without supporting evidence. Debt recovery should always be pursued through lawful means. How to Prevent Future Disputes Although debts may sometimes be recoverable without written agreements, prevention is always better than litigation. Whenever possible: Reduce important agreements into writing. Clearly state repayment terms. Keep payment records. Retain invoices and receipts. Confirm important discussions by email or message. Avoid making large loans without documentation. These simple steps can make future debt recovery much easier. Why Legal Advice Is Important Whether a debt can successfully be recovered depends on the available evidence, the applicable law, and the circumstances of the transaction. A lawyer can: Assess the strength of your claim. Review your evidence. Prepare a formal demand. Advise on negotiation or settlement. Commence legal proceedings where necessary. Represent you throughout the recovery process. Assist in enforcing any judgment obtained. Obtaining legal advice early can improve your chances of recovering the debt efficiently. How Lexforte Attorneys Can Help At Lexforte Attorneys, we assist individuals, businesses, financial institutions, and organisations with debt recovery and commercial disputes. Our services include: Legal assessment of debt claims. Review of supporting evidence. Preparation of demand letters. Negotiation and settlement. Debt recovery litigation. Commercial dispute resolution. Enforcement of court judgments. We are committed to helping our clients recover outstanding debts through practical and legally compliant strategies. Conclusion The absence of a
Business Name vs Limited Liability Company in Nigeria: Which Should You Choose?
One of the first decisions every entrepreneur must make is choosing the right legal structure for a business. Many people are unsure whether to register a Business Name or incorporate a Limited Liability Company (Ltd). While both structures allow you to operate legally in Nigeria, they are not the same. The structure you choose can affect your legal liability, ability to raise funds, credibility, taxation, ownership, and long-term growth. Understanding the differences between a business name vs limited liability company in Nigeria will help you make an informed decision. What Is a Business Name? A Business Name is a form of business registration that allows an individual or partners to carry on business under a registered name. Although the business acquires legal recognition through registration, it is not a separate legal entity from its proprietor or partners. In many situations, the rights and obligations of the business are effectively those of the proprietor or partners. Business names are commonly used by: Sole proprietors. Small businesses. Family businesses. Professional service providers. Startups testing a business idea. For many entrepreneurs, it offers a relatively simple way to begin operations. What Is a Limited Liability Company? A Limited Liability Company is a company incorporated under Nigerian law. Unlike a business name, a company has a separate legal personality. This means it can generally: Own property in its own name. Enter into contracts. Sue and be sued. Continue to exist despite changes in ownership, subject to the law. Its affairs are managed through its directors and shareholders in accordance with the applicable law and its constitutional documents. Key Differences Between a Business Name and a Limited Liability Company 1. Legal Status This is perhaps the most significant difference. A Business Name is not separate from its proprietor or partners. A Limited Liability Company is a separate legal entity recognised by law. This distinction has important legal and commercial consequences. 2. Liability One of the principal advantages of incorporating a company is the concept of limited liability. Subject to the law and the particular circumstances of a case, shareholders of a company generally enjoy limited liability for the company’s obligations. By contrast, proprietors of a business name may, in many circumstances, bear personal responsibility for the obligations of the business. However, limited liability is not absolute, and there are situations in which directors, shareholders, or other persons may still incur personal liability. 3. Ownership Structure A business name is usually owned by one individual or by partners. A company is owned by shareholders and managed by directors. This structure often makes it easier to admit new investors or transfer ownership interests. 4. Ability to Raise Investment Investors often prefer dealing with incorporated companies because they provide a recognised corporate structure for ownership and governance. A company can generally issue shares and accommodate changes in shareholding more easily than a business name. For businesses intending to attract investors or expand significantly, incorporation may be the more suitable option. 5. Business Continuity The continued existence of a business name may be closely connected to its proprietor or partners. A company, on the other hand, enjoys perpetual succession, meaning its existence is generally not affected simply because a shareholder or director dies, resigns, or transfers their interest. This makes companies more suitable for long-term business planning. 6. Credibility Many customers, investors, financial institutions, and government agencies regard incorporated companies as having a more formal business structure. Although many successful businesses operate under business names, incorporation may enhance credibility in certain commercial transactions. 7. Compliance Requirements A company generally has more legal and regulatory obligations than a business name. These may include maintaining corporate records, complying with statutory filing requirements, and observing corporate governance obligations. Business names also have legal obligations, but they are generally less extensive than those applicable to companies. Which Structure Is Right for You? A Business Name may be appropriate if you: Are starting a small business. Are the sole owner or have a small partnership. Want a relatively simple business structure. Do not presently intend to raise external investment. A Limited Liability Company may be more appropriate if you: Intend to grow the business significantly. Wish to attract investors. Expect to enter into substantial commercial contracts. Want a more structured ownership arrangement. Require a corporate identity for long-term operations. The most appropriate structure depends on your business objectives and should be determined after considering your legal and commercial needs. Can You Convert a Business Name to a Company? Many entrepreneurs begin with a business name and later incorporate a company as their business expands. The appropriate steps depend on the circumstances and applicable legal requirements. Before making the transition, it is advisable to obtain legal and professional advice to ensure that contracts, licences, assets, tax obligations, and regulatory requirements are properly addressed. Common Mistakes Entrepreneurs Make When choosing a business structure, entrepreneurs often: Select a structure without considering future growth. Ignore ownership and governance issues. Assume a business name provides the same legal protection as a company. Delay obtaining legal advice until disputes arise. Fail to understand ongoing compliance obligations. Avoiding these mistakes can save considerable time and expense. Frequently Asked Questions Is a Limited Liability Company better than a Business Name? Not necessarily. Neither structure is universally better. The right choice depends on factors such as the nature of the business, the level of risk, future expansion plans, investment needs, and regulatory requirements. Can a Business Name become a Limited Liability Company later? Yes. Many entrepreneurs begin with a business name and later incorporate a company as their operations expand. The transition should be planned carefully to address legal and commercial issues. Which is more suitable for startups? It depends on the startup’s objectives. A small business testing a new idea may find a business name sufficient at the early stage, while a startup seeking investment or rapid growth may benefit from incorporating a company. Why Legal Advice Matters Choosing a business structure is more than an administrative decision. It can affect
How to Register a Company in Nigeria: A Step-by-Step Guide
Starting a business is an exciting milestone, but one of the first legal steps towards building a successful and credible enterprise is registering your company. Incorporating a company not only gives your business a distinct legal identity but also enhances its credibility with customers, investors, financial institutions, and regulatory authorities. Understanding how to register a company in Nigeria is essential for entrepreneurs, startups, and investors who want to operate lawfully and position their businesses for long-term growth. This guide explains the registration process, key requirements, and common mistakes to avoid. Why Register a Company? Registering a company offers several legal and commercial advantages, including: Creating a separate legal entity distinct from its owners. Enhancing the credibility of the business. Improving access to business financing and investment opportunities. Enabling the business to enter into contracts in its own name. Protecting the business name from use by another registered company. Facilitating business growth and continuity. For many businesses, incorporation is an important step towards long-term success. Which Businesses Should Register a Company? While some entrepreneurs may operate under a business name depending on the nature and scale of their activities, incorporating a company may be more appropriate where the business intends to: Raise investment. Limit the liability of its owners. Enter into significant commercial contracts. Expand operations. Build a long-term corporate structure. The most suitable business structure depends on the objectives of the founders and the nature of the business. Step 1: Choose a Suitable Company Name The first step in how to register a company in Nigeria is selecting a suitable name. When choosing a company name: Ensure it is unique and distinguishable. Avoid names that are prohibited or misleading. Ensure the proposed name does not conflict with existing registered names or applicable legal restrictions. If the preferred name is unavailable, alternative names may need to be considered. Step 2: Decide on the Company’s Structure Before registration, the founders should determine important matters such as: The type of company to be incorporated. The business objectives. The proposed shareholders. The directors. The company’s registered office. The share structure. Careful planning at this stage can prevent future disputes and operational challenges. Step 3: Prepare the Required Information The information required for incorporation generally includes: Approved company name. Details of the directors. Details of the shareholders or subscribers. Registered office address. Nature of the business. Share capital and shareholding structure. Means of identification for relevant persons. Other information required by law or the Corporate Affairs Commission (CAC). The exact requirements may vary depending on the nature of the company. Step 4: Submit the Incorporation Application Once the necessary information has been prepared, the incorporation application is submitted to the Corporate Affairs Commission (CAC). The application is reviewed to ensure compliance with the applicable legal requirements before registration is completed. Where additional information or corrections are required, the applicant may be requested to provide them. Step 5: Obtain the Incorporation Documents Upon successful registration, the company is issued with its incorporation documents. These documents serve as evidence that the company has been duly incorporated and may include other statutory information maintained by the Corporate Affairs Commission. Businesses should keep these documents safely, as they are frequently required when opening bank accounts, bidding for contracts, obtaining licences, or entering into significant transactions. What Documents May Be Needed? Depending on the circumstances, the incorporation process may require documents such as: Means of identification for directors and shareholders. Passport photographs, where applicable. Proof of address where required. Information relating to the company’s registered office. Other supporting documents required by the Corporate Affairs Commission. Professional guidance can help ensure that all necessary documentation is properly prepared. Common Mistakes to Avoid Entrepreneurs sometimes delay or complicate the incorporation process by: Choosing a name without checking its availability. Providing inaccurate information. Selecting an unsuitable shareholding structure. Appointing directors without understanding their legal responsibilities. Using incorrect business objectives. Ignoring post-incorporation compliance requirements. Avoiding these mistakes can make the registration process smoother and reduce future legal risks. What Happens After Incorporation? Registering a company is only the beginning. After incorporation, a company may need to consider additional matters such as: Obtaining a Tax Identification Number (TIN), where applicable. Opening a corporate bank account. Maintaining statutory registers and corporate records. Holding meetings and keeping company records where required. Obtaining industry-specific licences or permits. Complying with tax and regulatory obligations. Protecting trademarks and other intellectual property where necessary. The applicable obligations depend on the nature of the company’s business. Why Professional Legal Advice Matters Although company registration has become more accessible, incorporation involves legal and commercial decisions that may affect the future of the business. A lawyer can assist by: Advising on the appropriate business structure. Preparing incorporation documentation. Advising on directors’ and shareholders’ rights and obligations. Drafting shareholders’ agreements where necessary. Advising on regulatory compliance. Providing post-incorporation corporate advisory services. Obtaining legal advice at the outset can help entrepreneurs establish a stronger legal foundation for their businesses. How Lexforte Attorneys Can Help At Lexforte Attorneys, we provide comprehensive corporate and commercial legal services to entrepreneurs, startups, investors, and established businesses. Our services include: Company registration and incorporation. Corporate restructuring. Corporate governance advisory. Drafting shareholders’ agreements. Regulatory compliance advisory. Commercial contract drafting and review. Corporate secretarial support. Business advisory services. We work with clients to ensure that their businesses are established on a sound legal foundation and remain compliant as they grow. Frequently Asked Questions Can one person register a company in Nigeria? Yes. Subject to the applicable provisions of Nigerian law, it is possible for a company to be incorporated with a single shareholder and a single director where the law permits. How long does company registration take? The time required depends on factors such as the completeness of the application, the availability of the proposed company name, and the processing time of the Corporate Affairs Commission. Can a foreigner register a company in Nigeria? Yes. Foreign investors may register companies in Nigeria, but additional legal and regulatory requirements may apply depending on
How to Legally Evict a Tenant in Nigeria
Owning rental property can be a rewarding investment, but disputes between landlords and tenants are not uncommon. Rent arrears, breach of tenancy terms, unlawful occupation after the expiration of a tenancy, and damage to property are some of the issues landlords frequently encounter. Although these situations can be frustrating, landlords must follow the law when seeking to recover possession of their property. Attempting to force a tenant out without following the proper legal process may expose the landlord to civil liability and, in some cases, criminal consequences. Understanding how to legally evict a tenant in Nigeria can help landlords protect their rights while complying with the law. When Can a Landlord Evict a Tenant? A landlord cannot lawfully evict a tenant simply because they wish to recover possession of the property. Depending on the circumstances, eviction may become necessary where: The tenant fails to pay rent. The tenancy has expired. The tenant breaches important terms of the tenancy agreement. The property is occupied without legal authority. Other legally recognised grounds exist. Whether eviction is justified depends on the facts of each case and the applicable law. 1. Review the Tenancy Agreement Before taking any action, carefully review the tenancy agreement. The agreement may contain provisions relating to: The duration of the tenancy. Payment of rent. Grounds for termination. Notice requirements. Responsibilities of both parties. Understanding these terms is essential before commencing the recovery process. 2. Serve the Appropriate Statutory Notice One of the most important steps in how to legally evict a tenant in Nigeria is serving the appropriate notice required by law. The type and length of notice required may depend on several factors, including: The nature of the tenancy. The terms of the tenancy agreement. The applicable tenancy or recovery of premises law in the relevant jurisdiction. Failure to serve the correct notice may delay or affect recovery proceedings. 3. Serve a Notice of Owner’s Intention to Recover Possession Where required, the landlord may also need to serve a Notice of Owner’s Intention to Recover Possession after the applicable tenancy notice has expired. This notice informs the tenant that legal proceedings may be commenced if possession is not delivered voluntarily. Compliance with the applicable legal procedure is important before approaching the court. 4. Commence Recovery Proceedings If the tenant refuses to vacate after the required notices have expired, the landlord may commence recovery proceedings in the court with the appropriate jurisdiction. The court will consider the evidence presented by both parties before determining whether the landlord is entitled to recover possession. A landlord should not assume that serving notices alone automatically entitles them to remove the tenant without a court order. 5. Obtain and Enforce the Court’s Order Where the court grants possession to the landlord, the order should be enforced through the lawful process of the court. If the tenant still refuses to vacate, the court’s enforcement process may include the issuance of the appropriate process, such as a writ of possession, depending on the applicable procedural rules. The landlord should allow authorised court officials to carry out the enforcement. Why Self-Help Is Unlawful Many landlords make the mistake of attempting to recover possession by: Changing the locks. Removing the tenant’s belongings. Disconnecting electricity or water. Threatening or harassing the tenant. Using force to remove the tenant. These actions are commonly referred to as self-help. Nigerian courts have consistently discouraged self-help in landlord and tenant disputes. Even where a landlord believes they are entitled to possession, the proper legal process should be followed. Common Mistakes Landlords Should Avoid Landlords should avoid: Evicting tenants without serving the required notices. Ignoring the tenancy agreement. Resorting to self-help. Failing to keep records of notices and rent payments. Taking advice from unqualified persons instead of obtaining legal guidance. These mistakes can lead to unnecessary delays and additional legal costs. What Should Tenants Do? Tenants also have legal rights. If a tenant receives notices or court processes relating to possession, they should: Read the documents carefully. Seek legal advice promptly. Respond appropriately where required. Continue to comply with lawful obligations while the matter is pending. Ignoring court processes may adversely affect the tenant’s legal position. Why Legal Advice Matters Landlord and tenant disputes are governed by tenancy agreements, applicable statutes, and procedural rules, which may differ from one jurisdiction to another. A lawyer can help by: Reviewing the tenancy agreement. Preparing and serving the appropriate notices. Advising on the correct legal procedure. Representing landlords or tenants in court. Assisting with the enforcement of possession orders. Obtaining legal advice early can save time, reduce costs, and help avoid procedural mistakes. How Lexforte Attorneys Can Help At Lexforte Attorneys, we provide practical legal solutions for landlords, tenants, property owners, developers, and investors. Our services include: Recovery of premises. Preparation and service of statutory notices. Landlord and tenant advisory. Recovery of rent. Property dispute resolution. Civil litigation. Enforcement of possession orders. General land and property legal services. We are committed to helping our clients resolve landlord and tenant disputes efficiently while ensuring full compliance with the law. Conclusion Understanding how to legally evict a tenant in Nigeria is essential for every landlord. While recovering possession of property is a recognised legal right, it must be exercised through the proper legal process. Serving the correct notices, commencing proceedings in the appropriate court where necessary, and enforcing any possession order through lawful procedures help protect the rights of both landlords and tenants while reducing the risk of avoidable disputes. Need assistance recovering possession of your property or responding to an eviction notice? Contact Lexforte Attorneys for trusted legal advice on landlord and tenant matters.
Business Partnership Disputes in Nigeria: What to Do When Business Partners Disagree
Starting a business with another person can provide valuable financial resources, skills, experience, and ideas. However, disagreements between business partners can arise even when the business relationship starts on good terms. Disputes may involve money, ownership, management, business decisions, profit sharing, responsibilities, or the future direction of the business. When these disagreements are not properly addressed, they can damage the business and sometimes result in costly litigation. Understanding business partnership disputes in Nigeria and knowing how to respond can help business owners protect their interests and, where possible, preserve the business relationship. What Is a Business Partnership Dispute? A business partnership dispute occurs when two or more persons involved in a business disagree over matters affecting their business relationship or the operation of the business. Common areas of disagreement include: Ownership interests. Capital contributions. Profit sharing. Business expenses. Management and control. Financial records. Withdrawal of funds. Business decisions. Responsibilities of the partners. Admission of new partners. Transfer of ownership interests. Dissolution of the business. Some disagreements are minor and can be resolved through discussion. Others can fundamentally affect the survival of the business. Common Causes of Partnership Disputes 1. Unclear Ownership Arrangements Problems often arise where the parties never clearly documented how ownership of the business is divided. For example, two founders may contribute different amounts of money, skills, property, or other resources without agreeing how those contributions translate into ownership. This can create serious disagreements when the business becomes profitable. 2. Disagreements Over Money Financial disagreements are among the most common causes of business disputes. Partners may disagree over: How profits should be distributed. Whether money should be reinvested. Business expenses. Salaries or drawings. Loans to the business. Use of company funds. Proper financial records and clearly defined financial arrangements can help reduce these disputes. 3. Disagreements Over Management Partners may have different ideas about how a business should operate. One partner may want to expand aggressively while another prefers a more cautious approach. Disputes may also arise regarding: Hiring employees. Taking loans. Entering major contracts. Opening new branches. Selling business assets. Changing the business model. A properly structured governance arrangement can establish how important decisions are made. 4. Failure to Define Roles and Responsibilities A business can become dysfunctional when partners do not know who is responsible for particular aspects of the business. A partnership or shareholders’ agreement can clearly establish the responsibilities of each partner and create accountability. 5. Lack of a Written Agreement One of the biggest causes of business partnership disputes in Nigeria is the failure to properly document the relationship between business owners. Trust may be sufficient to start a business, but it may not be sufficient to resolve disagreements later. A written agreement can address important matters such as: Ownership. Contributions. Profit sharing. Management. Decision-making. Transfer of interests. Exit arrangements. Dispute resolution. What Should You Do When a Dispute Arises? Step 1: Review Your Agreement If the business relationship is governed by a partnership agreement, shareholders’ agreement, articles, or another contractual arrangement, review the relevant documents first. They may contain procedures for resolving disagreements. Step 2: Gather the Relevant Records Preserve documents relating to the dispute, including: Agreements. Financial statements. Bank records. Company records. Emails. Messages. Meeting minutes. Invoices and receipts. These documents may become important if the dispute escalates. Step 3: Communicate Clearly Not every disagreement requires immediate legal action. Where appropriate, the partners should identify the specific issues in dispute and attempt to find a practical solution. Keeping communications professional can also make future negotiations easier. Step 4: Consider Mediation Mediation can provide a structured environment for business partners to attempt to resolve their differences with the assistance of a neutral third party. It can be particularly useful where the parties want to preserve their business relationship. Possible outcomes may include: Revised responsibilities. New financial arrangements. Changes to management. Buy-out arrangements. Agreed exit terms. Step 5: Obtain Legal Advice Where the dispute involves significant money, ownership, company control, or potential litigation, legal advice should be obtained early. A lawyer can review the relevant documents and explain the legal rights and obligations of each party. What If One Partner Is Misusing Business Funds? This can be a particularly serious situation. If a partner is suspected of improperly taking or using business funds, the appropriate response will depend on the circumstances and the structure of the business. Relevant financial and corporate records should be preserved, and professional legal advice should be obtained before taking significant action. Depending on the facts, legal remedies may be available to protect the business and other owners. Can a Partner Be Removed From a Business? Whether a partner or shareholder can be removed depends on the legal structure of the business, the governing documents, applicable legislation, and the circumstances. A business owner should not assume that they can simply remove another owner because they disagree with them. The appropriate legal procedure should be determined before taking action. What Happens If the Partners Cannot Agree? Where negotiation and mediation fail, other dispute-resolution options may become necessary. Depending on the circumstances and the applicable agreement, these may include: Arbitration. Court proceedings. Buy-out arrangements. Restructuring. Dissolution or winding up of the business. The appropriate option depends on the nature of the dispute and the objectives of the parties. How to Prevent Partnership Disputes The best time to address potential disagreements is before they arise. Business owners should consider having a properly drafted agreement covering: Ownership interests. Capital contributions. Profit and loss sharing. Management responsibilities. Decision-making procedures. Restrictions on transferring interests. Confidentiality. Intellectual property. Exit arrangements. Death or incapacity of a partner. Dispute resolution. A well-drafted agreement can provide a roadmap for dealing with difficult situations. Partnership Agreement vs Shareholders’ Agreement The appropriate document depends on the legal structure of the business. A partnership agreement is generally relevant to a partnership arrangement, while shareholders’ agreements are commonly used in companies to regulate relationships among shareholders. The terminology and legal consequences should therefore not be treated as interchangeable. Professional advice can help