A partnership agreement, sometimes called a business partnership agreement or a general partnership agreement, is a contract used to settle a business relationship between two or more people (or companies) that collaborate. A partnership is not a separate legal entity (such as a business), but must have a Tax Identification Number (TFN) and file a tax return. Each of the partners is taxed separately on his share of profits. Having a partnership agreement in writing, instead of entering into an oral agreement by handshake, can help avoid possible disputes that may arise by clearly stating the expectations, responsibilities and rights of each partner in the contract. A partnership is entitled to an Australian Business Number (ABN) when it carries on business in Australia (for example.B.