Participation Agreement
/ˌpɑːr.tɪ.sɪˈpeɪ.ʃən əˈɡriː.mənt/
Definitions
- (n.) A contract outlining the terms under which parties agree to collaborate or participate in a joint venture or project.
The partners signed a participation agreement to define their roles and profit shares.
- (n.) An agreement by which a lender or investor secures the right to share in the income or profits of a loan or business.
The bank entered a participation agreement to receive a portion of the loan's interest payments.
Forms
- participation agreements
Related terms
See also
Commentary
Typically used to clarify roles, rights, and obligations among co-participants; drafting should explicitly specify contribution, profit sharing, and dispute resolution.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.