What is Partnership Agreement?

A definition of Partnership Agreement

“A partnership agreement is a written contract between two or more business partners that outlines the roles, responsibilities, and profit sharing among them.”

Partnership Agreement in Business Glossary - What is a Partnership Agreement?

Business Glossary > What is Partnership Agreement?


Examples of Partnership Agreement in a Sentence:

We signed a partnership agreement to launch the new startup together.

The partnership agreement specifies how decisions will be made.

Without a partnership agreement, disputes can easily arise among partners.

Why is Partnership Agreement Important in Business?

A partnership agreement is crucial as it provides a clear framework for partners, helping avoid conflicts by clearly defining roles, responsibilities, and profit-sharing arrangements. It ensures smooth operations and helps protect the interests of all involved parties.

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Associated Terms

Here are some associated business terms and synonyms for “Partnership Agreement”:

  • Partnership Contract
  • Business Partnership Agreement
  • Joint Venture Agreement

Google Partnership Agreement

Google entered a partnership agreement with NASA in 2005 to collaborate on R&D and new technology innovations. This agreement allowed both entities to leverage each other’s resources and expertise, creating a tremendous impact in various research fields.

Final Notes on Partnership Agreement

When drafting a partnership agreement, partners should consider:

  • Roles and responsibilities
  • Profit and loss sharing
  • Dispute resolution mechanisms
  • Duration and termination conditions

Having a well-structured agreement helps prevent misunderstandings and ensures the business operates smoothly.


This has been a definition of Partnership Agreement meaning.

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