What is an important feature of a partnership agreement?

A partnership agreement is fundamentally a contract between partners that outlines the terms of the partnership, including responsibilities, profit-sharing, management, and other key operational aspects. This agreement establishes formal roles and expectations, which helps prevent disputes and misunderstandings among partners. By serving as a legally binding contract, it provides a framework that governs the behavior of all partners and can be enforced in the event of disagreements.

While it is possible for partnerships to operate without a formal agreement (making the notion of it being optional relevant), having a partnership agreement is essential for clarity and legal stability. The correct answer reflects the core purpose of this type of agreement, highlighting its role in defining and formalizing the relationship between the partners.

The other options present varying degrees of misunderstanding. Unanimous consent may not always be necessary for all decisions depending on what the partnership agreement stipulates, and not all partnerships operate under such stringent provisions. Likewise, while a partnership agreement can outline the roles of partners, it does not inherently limit those roles—it empowers partners by delineating their responsibilities and rights, thus promoting effective collaboration.