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).