Partnership Agreement: key clauses and how to draft it

What is a partnership agreement?

A partnership agreement is a deal between two or more partners to run a joint venture, setting capital shares, profit and loss sharing and management powers. Writing it clearly up front is far cheaper than resolving a later dispute.

Key clauses every partnership agreement should include

The clearer the clauses, the fewer the disputes. Make sure at least these elements are covered:

• Partner names, capacity and type of partnership
• Purpose and term of the partnership
• Each partner’s capital share and how it is contributed
• Profit distribution and loss bearing
• Management, representation and decisions needing unanimous consent
• Rights to transfer shares and pre-emption
• New partner entry, exit and death
• Competition and confidentiality
• Dispute resolution and liquidation

Practical tips before signing

• Decide who may sign for and spend from the venture’s account.
• Agree in advance how a share is valued on exit.
• Do not rely on verbal agreements for profit sharing.
• Review the right legal form (company or civil partnership) with a specialist.

How to create a partnership agreement in Oqoodi AI

Oqoodi drafts contracts in Arabic and English, collects e-signatures through a secure link, keeps an audit trail of who did what and when, and archives every document for search.

1. Pick the "Partnership Agreement" template in Oqoodi, or describe your case to the AI assistant and let it draft the text.
2. Enter the parties, amounts and dates, then adjust the clauses to match your deal.
3. Generate an Arabic and an English version when needed and review the wording before sending.
4. Send the e-signature link to the other party, then track and archive the contract from your dashboard.