When drafting a partnership agreement, the initiating partner should clearly outline the purpose of the partnership, the scope of business activities, and the expected contributions of each partner to establish a solid foundation.
Define ownership shares, profit and loss allocations, and decision-making procedures to ensure transparency and avoid conflicts over control or financial distribution.
It is advisable to include exit strategies, buyout provisions, and dispute resolution mechanisms to protect all partners’ interests and provide clear solutions for future contingencies.