A partnership agreement is a legal document that outlines the terms and conditions of a business partnership. It specifies the roles, responsibilities, and contributions of each partner, as well as how profits and losses will be shared. This agreement helps prevent misunderstandings and provides a clear framework for decision-making within the partnership. In addition to financial arrangements, a partnership agreement may address issues such as dispute resolution, the process for adding or removing partners, and the duration of the partnership. Having a well-drafted agreement is essential for ensuring a smooth and successful collaboration among partners.