What is a Partnership Agreement?
The partnership agreement is a contract between two or more business partners. The main purpose of the partnership business is to distribute the responsibilities of the business among each partner. The profit earned through the business is also distributed among all the parties of the agreement. There are some rules of the partnership which are applied to all the members of the partnership. In order to make all the members follow those rules, a partnership agreement is written. The partnership agreement bounds all the partners and they are not allowed to do anything which is beyond the limitations of the agreement.
How to Write a Partnership Agreement
The biggest information which is used in the partnership agreement is the details about how the profit sharing will be done among the partners. This agreement is created by any legal body of the country. The terms and the conditions of the agreement are mentioned and each party is given enough time to read all the terms and conditions.
These days the partnership is considered as a foundation of any business. There is a special relationship between two or more business partners. That relation should be clearly defined somewhere so that the record is kept and in the case of any conflict, that record can be consulted.
All the important components of the business partnership are included in the agreement. These are actually those components, which form the basis of the business and which provide the security to each partner in the business.
The main components of the partnership agreement are the clauses which form the basis of the agreement, the terms and conditions to be followed, the purpose of making the partnership and the responsibilities of every individual partner are also mentioned in the agreement. Each party is asked to sign the agreement. When the agreement is signed by all the parties, it becomes a legal document.
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Simple Partnership Agreement Template in MS Word (.Doc) & PDF Formats
Basic Partnership Agreement Sample in MS Word (.Doc) & PDF Formats