General Partnership Agreement
A General Partnership Agreement, also known as business partnership or simply partnership agreement, is a contract between two or more individuals or companies, which team up to carry on a trade or business. In most partnerships, each partner contributes money, labour, property, or skills to the partnership. In return, each partner is entitled to a share of the profits or losses of the business. The business profits (or losses) are usually divided among the partners based on the partnership agreement.
This Partnership Agreement stipulates the rights and responsibilities of each partner, specifies the ownership interest in the Partnership, defines the profit and loss distribution of each Partner, prepares the Partnership for common business scenarios, and includes other important rules as regards how the Partnership will be managed.
This document can either be created at the commencement of a new business or as the binding document of an already existing business to assist the partners clarify how the Partnership should operate.
Index of the contract