Discuss (a) the purpose of the articles of partnership, and (b) indicate the items that should be included.

a) The purpose of the articles of partnership is to provide in writing the agreement set forth by the partnership to avoid misunderstanding. When two or more people agree orally or in writing to be partners, a contract results.
Although the oral agreement is binding, it makes more sense to seek legal advice and have a formal written agreement prepared to protect the interest of the partners.
b) Some of the items that should be included are:
1. Name and address of each partner, along with the date of the agreement.
2. Rights and responsibilities of each partner.
3. Amount that each partner is investing.
4. Specific manner in which partners' profits or losses will be shared.
5. Provisions for one or more partners quitting the partnership.
6. How new partners will be admitted.
7. How assets will be distributed if the business is completely terminated.
8. How accounting records will be maintained.