A partnership is a partnership in which all partners share equal shares in profits, management responsibilities and responsibility for debts. If the partners plan to share the profits or losses unevenly, they must document this in a legal partnership agreement to avoid future litigation. A standard limited partnership («LPA») model is an ongoing need in the private equity asset class given the cost, time and complexity of negotiating investment terms. General partners («GPs») have an interest in shortening the duration of warranty contracts, providing fundraising security and reducing their fundraising costs. Similarly, sponsors («LPs») want fair and transparent terms that explain rights and obligations while reducing their legal process costs. All partnerships should have an agreement that determines how to make business decisions. These decisions include how to divide profits or losses, resolve conflicts and change the ownership structure, and how to close the business if necessary. See also: Example of a template for a partnership agreement While most startups choose to start a business, some companies create legal partnerships to structure their business. Partnerships are a legal agreement between two or more parties. There are two types of partnerships in Ontario: The LLP is formed when both classes of partners have negotiated and signed the LPA (Limited Partnership Agreement), which is the agreement that contains the terms and conditions that govern the relationship between them. This means that the APA can really be defined as a contract between the parties and therefore must be designed and negotiated with great care (in some jurisdictions, such as the State of Delaware, the standard provision governs relations within the APA unless an explicit or implied agreement is reached between the SPs and primary care physicians; but most funds do not want such an outcome and therefore see their internal government. down to the smallest detail). .