1. Before establishing a partnership, an agreement must be made between all partners to avoid any conflicts of interest that may arise. This Agreement is designated as the Partnership Agreement.
2. The key details that must be stated in the Partnership Agreement are:
(a) The name of the firm and the name of all the partners.
(b) Business type and business address.
(c) The amount of capital contributed by each partner.
(d) The ratio of profit or loss of distribution between partners.
(e) The powers and responsibilities of each partner.
(f) How to save an account.
(g) Wages paid to active partners.
(h) The amount of authorized take-up and the interest rate charged.
(i) Interest rates on capital and loans granted by the partners to the