When two or more people go into business together it is essential that they prepare a written agreement setting out how the business is to be managed and their relationship to each other as business partners. Having a well drafted partnership agreement creates a strong foundation for your business. It will assure that the business runs smoothly and prevent disputes and misunderstandings between the partners over their rights and responsibilities. Without a proper partnership agreement the relationship between those who go into business together with a view to profit will be governed by the old Partnership Act of 1890. This is rarely what is required in today's business environment.