A Partnership Agreement is a legal document that outlines the terms and conditions of a business partnership. It specifies the roles and responsibilities of each partner, how profits and losses will be shared, and what happens if a partner wants to leave the business. This agreement helps prevent misunderstandings and provides a clear framework for decision-making. Having a well-drafted Partnership Agreement is crucial for any business involving multiple partners, such as small businesses or startups. It can also address issues like dispute resolution and the process for adding new partners, ensuring that everyone is on the same page and protecting the interests of all involved.