In addition to the subsidy contract, which is issued to the Lead Beneficiary on behalf of the project partnership, it is required that the partnership draws up a partnership agreement. The purpose of the partnership agreement is to agree on who does what, when and at what price. The partnership agreement is also very important in connection with 2nd level control checks where the partnership agreement can be the difference between paying back funding or not. It is important to bear in mind that a partnership agreement is only valid if it is actually signed. Having a draft version of the partnership agreement in you drawer is not enough and does not impress the 2nd level controllers or anyone else.
Please consult Fact Sheet 14: Partnership Agreement (version 2) for further information and an example of the partnership agreement.