When two or more parties decide to enter into a business venture, they often formalize their agreement through a partnership agreement. This document outlines the rights and responsibilities of each partner and sets the terms for the operation and management of the business. However, you may be surprised to learn that there are other names for a partnership agreement.
One such name is a partnership deed. This term is commonly used in the United Kingdom and India, where a partnership is often referred to as a « firm ». A partnership deed outlines the same details as a partnership agreement, including the distribution of profits and losses, management responsibilities, and dispute resolution procedures. It is important to note that a partnership deed is not legally required in all jurisdictions.
Another name for a partnership agreement is a articles of partnership. This term is commonly used in the Philippines, where a partnership is often referred to as a « partnership corporation ». Articles of partnership serve the same purpose as a partnership agreement, outlining the terms of the partnership and establishing the rights and responsibilities of each partner. Unlike a partnership deed, articles of partnership are legally required in the Philippines.
In the United States, it is more common to use the term partnership agreement, but other names such as articles of partnership or partnership deed may be used depending on the jurisdiction or industry.
Regardless of the name, a partnership agreement is a crucial document for any business venture involving multiple parties. It not only clarifies the expectations and obligations of each partner, but it also helps prevent future disputes and can be used as a reference in case of legal issues.
In summary, a partnership agreement may also be referred to as a partnership deed or articles of partnership, depending on the jurisdiction or industry. Regardless of its name, this document is essential for formalizing the terms of a business partnership and ensuring the success of the venture.