Partnership Agreement

What is a Partnership Agreement?

When You'll Need a Partnership Agreement Template

While it's always beneficial to have a partnership agreement, there are specific situations where it's particularly useful. If you're entering into a business partnership, regardless of whether it's with a friend, family member, or business associate, you should have a partnership agreement template in place. It comes in handy when:

• Starting a new business as a partnership
• Adding a new partner to an existing business
• Wishing to formalize an informal partnership

Who Can Benefit from a Partnership Agreement?

Anyone involved in a partnership can benefit from a partnership agreement template. Whether you're a seasoned business owner or an entrepreneur starting your first business, this document provides a clear understanding of each partner's role and responsibilities. It's also useful for legal professionals assisting in the formation of partnerships.

Legal Protection Offered by a Partnership Agreement

A partnership agreement template helps to protect your business and your interests. It outlines crucial elements such as the sharing of profits and losses, decision-making processes, dispute resolution mechanisms, and the procedure upon a partner's exit or death. By spelling out these details, it provides legal protection to all parties involved, ensuring that everyone knows what to expect and what is expected of them.

Examples of Partnership Agreement Use

• A Real Estate Venture: Two friends decide to invest in a real estate property together. They use a partnership agreement template to clarify their investment amounts, profit-sharing ratios, roles, and responsibilities.
• A Family Business: A father and son decide to run a family restaurant together. They use a partnership agreement to define their roles, share of profits, and procedures for resolving disagreements.