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The Partnership Agreement
A partnership is being created by a contract expressing the voluntary
agreement of two or more individuals. The written partnership
agreement, often is referred to as the partnership agreement or
articles of co-partnership, contains such basic information as for
the name and principal location of the firm, the purpose of the
business and date of inception. In addition, different relationships
that will be exist among the partners, such as the following, should
be specified:
1. Names and capital to contributions of partners.
2. Rights and duties of partners.
3. Basis for sharing of net income or net loss.
4. Provision for withdrawals of income.
5. Procedures for submitting disputes to arbitration.
6. Procedures for the withdrawal or addition of such a partner.
7. Rights and duties of the surviving partners in the event of a
partner' s death.
The importance of a written contract cannot be overemphasized.
The agreement should be drawn with a care and should attempt to
anticipate all possible situations, contingencies, and disagreements.
The help of a lawyer is highly desirable in preparing the agreement.
A poorly drawn contract may create that friction among the partners
and eventually cause the termination of the partnership

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