Whether for the purchase of a business, equipment, or real estate, most contracts contain standard terms, often referred to as boilerplate. Even though the terms may be standard, there are often subtle differences in the wording that can have significant consequences down the road. More importantly, even though terms may be typical in a business or real estate contract, they may be contrary to your business' interests in a particular transaction.
You agree to do a business deal with a colleague and split the profits at the end. When your colleague’s conduct causes a third party to sue, you get sued, too. In reading the lawsuit filed against you both, it states you are partners and you are liable for your colleague’s conduct.