Partnership contract definition. Analyzing the definition of key terms often provides more insight about concepts. Partnership contract can be defined as – Agreement among partners that sets terms under which the affairs of the partnership are conducted; also called articles of partnership. Lile a sole proprietorship a general partnership is easy to form, a partnership being created when two or more individuals get together with a business objective of earning revenue. A partnership contract explaining the terms of the partnership is very important to the wellbeing of the partnership. The partnership contract should include profit sharing and can include many more details about what is expected of the partners, the timing of the partnership, and what will happen when a partner leaves the partnership. If no partnership contract is created the profits and losses are assumed to be split evenly but even in situations where profit is intended to be split evenly a contract is recommended.
