Partnership Agreement – Definition

Cite this article as:"Partnership Agreement – Definition," in The Business Professor, updated October 10, 2014, last accessed May 26, 2020, https://thebusinessprofessor.com/lesson/partnership-agreement/.
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Partnership Agreement

http://youtu.be/6SfhasxZqDc   Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP What is a partnership agreement? A partnership agreement is a written contract between the partners that controls or governs partnership operations. The partnership agreement generally covers all maj

 

Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP

What is a partnership agreement?

A partnership agreement is a written contract between the partners that controls or governs partnership operations. The partnership agreement generally covers all major aspects of the business, including:

  • ownership interests,
  • partner contributions,
  • rights to profits and losses,
  • partner responsibility,
  • authority of each partner,
  • partnership decision making,
  • procedures for partners entering or exiting the partnership, resolution of disputes, etc.

These same provisions apply to Joint Venture Agreements. Because a joint venture is between two or more business entities, there may be special considerations for each of the above-referenced concerns.

Notably, joint venture agreements may have a finite life. This is similar to term partnership (as opposed to at-will partnerships).

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