A partnership agreement is a legally binding document that outlines the terms and conditions governing a business partnership between two or more parties. It defines essential aspects such as the partnership’s name, purpose, and duration, along with each partner's roles, responsibilities, and contributions, whether in the form of capital, assets, expertise, or services. The agreement specifies how profits and losses will be shared, the decision-making process, and management duties, ensuring operational control and authority clarity. Additionally, it includes provisions for dispute resolution, withdrawal, removal, or addition of partners, as well as guidelines for dissolution or exit strategies. Partners must establish operations, management, and responsibilities within a business partnership. Contracts can serve as a legal framework to define each partner’s rights and contributions in such arrangements. This blog will discuss how partnership agreements can ensure smooth operations, minimize legal risks, and provide stability and clarity.