Each partner is equally responsible for the debt and obligations of the company as well as the shares of the other partner. No matter how long your best friend has been with you, you always have to make a deal between the two of you. It is necessary because it describes what each partner can get in return, what you can expect from him, how much profit and loss he shares, etc. An agreement offers you a solid understanding of business relationships, rights, obligations, important rules and regulations and the definition of other things between the partners and defines everything for the partners to avoid future differences. Any group of individuals entering into a business partnership, whether it is family, friends or random acquaintances on the Internet, should invest in a partnership agreement.