Document background
The Profit and Loss Partnership Agreement is a critical legal document used in Nigeria when two or more parties wish to establish a formal partnership structure for conducting business together. This document is essential for businesses operating under Nigerian law, particularly when partners need to clearly define their rights, responsibilities, and share of profits and losses. It incorporates provisions from the Nigerian Partnership Act, Companies and Allied Matters Act (CAMA) 2020, and relevant state partnership laws. The agreement is particularly valuable for new business ventures, professional practices, and existing businesses adding partners, as it provides clear guidelines for partnership management, profit distribution, dispute resolution, and eventual dissolution or exit procedures. This comprehensive document helps prevent future disagreements by establishing clear terms at the outset of the business relationship.
