California partnership agreements are developed when two parties (or more) have determined the terms of their business relationship and wish to have them clearly documented. Since this will outline the management authority and percentage of ownership that each partner enjoys, the partners can run their business with the confidence of a signed agreement. Through this agreement, the partners will have a description of their liability to the business and what protections are available.
It is vital that the agreement is properly and honestly negotiated by each partner before it is signed. In fact, it would be highly recommended that each partner completes comprehensive research on topics ranging from the market for their business to responsibilities they must live up to before submitting a signature.
“Partnership agreement” means the agreement, whether written, oral, or implied, among the partners concerning the partnership, including amendments to the partnership agreement.