It is much better to put your agreement in a document that specifies the points on which you and your partners have agreed. In other words, a business partnership agreement protects all partners if things get furious. Through the agreement of a clear set of rules and principles at the beginning of a partnership, partners are on an equal footing, developed by consensus and supported by law. The document is an important foundational document for the management of a new business and serves to prepare the company for success by ensuring clear communication and defined responsibilities for all partners. This agreement documents both contingency plans in the event of failure and descriptions of the day-to-day operation of the partnership.