A partnership agreement is crucial for several reasons:
Clarity of Roles and Responsibilities: The agreement specifies the duties of each partner, preventing misunderstandings. Profit and Loss Sharing: It outlines how profits and losses will be divided, ensuring transparency. Conflict Resolution: The agreement provides mechanisms for resolving disputes, which can save time and legal costs. Duration and Termination: It defines the duration of the partnership and the conditions under which it can be terminated.