A partnership agreement is a legal document that outlines the terms and conditions of a partnership between two or more individuals or entities who are joining forces to carry out a business venture. This agreement sets out the rights and responsibilities of each partner, the share of profits and losses, and the rules for decision-making and dispute resolution.
Here are two items that can be included in a partnership agreement:
Distribution of Profits and Losses: The partnership agreement should specify how the profits and losses of the business will be shared among the partners. This can be based on a percentage of ownership or contribution to the business.
Roles and Responsibilities: The partnership agreement should define the roles and responsibilities of each partner. This can include duties such as managing finances, marketing and sales, and operational tasks. It should also outline the decision-making process, such as whether all partners have an equal say or if certain partners have more authority in specific areas.