Legal Definitions - articles of partnership

Definition: Articles of partnership refer to a contract that outlines the rights and responsibilities of partners towards each other in a partnership. It does not cover the relationship between the partners and third parties. It is also known as a partnership agreement.

Example: If two friends decide to start a business together, they may create articles of partnership to define their roles and responsibilities. The agreement may include details such as the amount of capital each partner will contribute, how profits and losses will be shared, and how decisions will be made.

Explanation: The example illustrates how articles of partnership can be used to establish a clear understanding between partners in a business. By defining their roles and responsibilities, partners can avoid misunderstandings and conflicts that may arise in the future.