What items to be included in a usual partnership agreement?

Generally, the following are the important items that need to be included in any partnership agreement:

• Amount of capital to be contributed by individual partner;
• Profit sharing ratio;
• Salaries to be paid to the partners;
• Interest on capital contributed;
• Interest on loans from partners
• Drawings
• Interest on drawings,etc

In the event, there is no partnership agreement, the terms should follow under the MALAYSIAN Partnership Act 1961 which are:

• All partners should contribute an equal amount of capital;
• Partners should not receive salaries;
• Interest on capital or on drawings is not allowed;
• Partners should share profits and losses equally;
• An interest of 8% should be paid on loans from partners.