A partnership agreement in written form will have to be tailor-made to reflect the nature of the firm being established. It should have the following important terms, however-
- Names of the partners
- A description of the business to be undertaken
- The shares of the profits and losses to be allocated to the different partners
- The respective contributions of the partners to the business, financial and personal
- A description of the partnership assets and their ownership
- A mechanism for bringing the partnership to an end, and for dividing the assets and liabilities when it does conclude.
There will probably be a number of other terms which partners will want, eg specifying holiday entitlements.