partnership agreement

Popular Terms
Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states the (1) nature of the business, (2) capital contributed by each partner, and (3) their rights and responsibilities. A partnership does not have a separate legal existence like an incorporated firm, and the partners are jointly and severally liable for the debts of the firm. Even on withdrawing from the partnership they remain liable for already incurred debts, and for future debts unless a proper notice of retirement is published. A valid partnership, however, can exist without a written agreement in which case the provisions of the statutes governing partnerships would apply.
Also called agreement of partnership. See also articles of partnership.

Use 'partnership agreement' in a Sentence

Our partnership agreement specifically states you're responsible for earning the income while I drink the Pina Coladas. It's right there, on line 33.
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You should always trust anyone that you enter into a partnership agreement with so that you do not get taken advantage of.
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They finally had a partnership agreement with each other and I was relieved because they had butted heads for long enough.
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