An agreement listing and explaining the terms of a partnership is known as a partnership agreement. This legal document serves as the foundation for any successful partnership between two or more entities.

Partnership agreements outline the responsibilities and obligations of each partner and dictate how decisions will be made within the partnership. They also cover topics such as profit and loss sharing, dispute resolution, and the duration of the partnership.

One key benefit of a partnership agreement is that it helps to avoid misunderstandings and disagreements down the line. By clearly outlining expectations and responsibilities, partners are able to navigate potential conflicts with ease and maintain a strong, productive relationship.

Another important aspect of a partnership agreement is that it can provide protection to partners in the event of legal disputes. Without a documented partnership agreement, partners may find themselves vulnerable to lawsuits or other legal challenges.

In addition to protecting partners legally, a partnership agreement can also help to ensure long-term success by fostering communication and collaboration. By setting clear expectations and providing a framework for decision-making, partnerships are more likely to thrive over time.

Overall, a partnership agreement is an essential tool for any business looking to form a long-term partnership. By providing clarity and protection, it allows partners to work together effectively and achieve their shared goals.