A limited partnership is a partnership that has at least two classes of partners, a general or managing partner who operates the company and limited partners who invest but do not partake in day to day decisions.
An Agreement of Limited Partnership (also known as a Limited Partnership Agreement) is a formal, legally-binding document that outlines the terms and conditions of a limited partnership established between two or more partners. This agreement specifies the rights and responsibilities of the partners in the partnership, as well as the management and control of the business. It also outlines the roles and duties of each partner and how profits and losses are to be shared. There are two types of Agreement of Limited Partnership: the General Partnership Agreement and the Limited Partnership Agreement. The General Partnership Agreement covers all the terms and conditions of the business, and the Limited Partnership Agreement outlines the rights and responsibilities of the partners in the partnership. Both types of agreements are legally binding and enforceable by law.
