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Partnership agreement is crucial to outline the terms and conditions between partners and ensure the smooth functioning of the partnership. Here’s an outline of the content that might be included in a partnership agreement:


Partnership agreements are legally binding documents, and it’s crucial to have them drafted or reviewed by legal professionals to ensure they accurately reflect your intentions and comply with local laws and regulations.
  1. Introduction:

    • Introduce the partnership agreement, including the names of the partners and the name of the partnership.
  2. Purpose and Business Activities:

    • Define the nature of the partnership’s business activities.
    • Explain the purpose of the partnership, its goals, and its intended outcomes.
  3. Partners’ Information:

    • Provide the full names, addresses, and contact details of all partners.
    • Specify the contributions (capital, assets, skills) each partner brings to the partnership.
  4. Profit and Loss Sharing:

    • Outline the distribution of profits and losses among partners.
    • Detail the specific ratio or percentage each partner is entitled to.
  5. Management and Decision-Making:

    • Define the decision-making structure within the partnership.
    • Clarify whether decisions require unanimous agreement or can be made by a majority vote.
  6. Roles and Responsibilities:

    • Assign specific roles, responsibilities, and duties to each partner.
    • Specify any managerial positions and the scope of their authority.
  7. Capital Contributions:

    • Detail the initial capital contributions made by each partner.
    • Explain how additional capital contributions will be handled if needed.
  8. Withdrawal and Distributions:

    • Describe the process for partners to withdraw from the partnership.
    • Outline the distribution of assets upon withdrawal or dissolution.
  9. Admission of New Partners:

    • Specify the process for admitting new partners into the partnership.
    • Address matters such as capital contributions, profit-sharing, and decision-making.
  10. Dispute Resolution:

    • Outline procedures for resolving disputes among partners.
    • Mention the use of mediation or arbitration if necessary.
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