What is the purpose of a partnership agreement?

A partnership agreement is an important legal document that serves to govern the relationship between two or more individuals who share in the ownership of a business. In Oregon, it is required by law that any individuals who are forming a business partnership must have a partnership agreement in place. The purpose of a partnership agreement is to clearly outline the rights of each partner in the business. It should include all of the responsibilities of the partners, and should also include how profits and losses should be divided between the partners. This agreement should also set out guidelines for decision-making, governance of the business, and any dispute resolution procedures. A partnership agreement also serves to protect the rights of each partner, as it ensures that each partner will receive their share of any profits or losses incurred by the business. It also provides protection from the other partner taking control of the business, as the agreement outlines clearly what responsibilities each partner has and what decisions each partner can make. In conclusion, a partnership agreement is an important legal document that serves to clearly outline the rights and responsibilities of each partner in a business. It also ensures that each partner will receive their share of any profits or losses, and provides protection from the other partner taking control of the business.

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What is the purpose of a partnership agreement?

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