A partnership agreement is a legal document that outlines the terms and conditions of a business partnership. It details each partner's roles, responsibilities, and contributions, ensuring everyone is on the same page. This agreement helps prevent misunderstandings and conflicts by clearly defining how profits and losses will be shared, as well as how decisions will be made. Having a partnership agreement is essential for any business involving multiple partners, such as small businesses or startups. It can also address important issues like what happens if a partner wants to leave or if new partners join. Overall, it serves as a roadmap for a successful partnership.