A partnership agreement is a written agreement between two or more than two people who wish to join as partners and to conduct a business to earn profits. Generally, a partnership pact contains the nature of business, rights and responsibilities of the partners and their capital contribution. In the final stage, you need to pick the law which will govern the agreement and get it signed by the relevant authorities. The future of the partnership business must be explained by explaining the process of admitting new partners. Also, you must mention what will happen if the partner dies or withdraws from the partnership. One common mistake small businesses make, says Michael Boutros, a lawyer and partner at Krevolin & Horst, LLC, is to give each owner an equal say in the business without including a tie breaker. Boutros explains, “When two 50-50 partners inevitably develop diverging views on a major company decision–whether to purchase a new building, or to invest in a new international division–the company reaches an impasse that impedes its long-term viability.”. A partnership agreement a contract between business partners that details how the business operates and the individual responsibilities and liabilities of each party. When partners feel the need, they may find the need to expand the business and bring in new partners. Admitting new partners has an appropriate procedure.