Partnership Deed is the document that defines therights and obligations of partners. Besides names,address and occupation of partners it lays down the duration of partnership, nature of business, profit sharing ratio, right to interest, salary, commission etc.
Dear Uma > Partnership Deed Partnership Deed is the document that defines therights and obligations of partners. Besides names,address and occupation of partners it lays down the duration of partnership, nature of business, profit sharing ratio, right to interest, salary, commission etc. A partnership is formed by an agreement. This agreement may be in writing or oral. though the law does not expressly require that the partnership agreement should be in writing, it is desirable to have it in writing in order to avoid any dispute with regard to the terms of the partnership. The document which contains the term of a partnership as agreed among the partners is called “partnership deed”. The partnership Deed is to be duly stamped as per the Indian Stamp Act, and duly signed by all the partners. Thanks
Partnership deeds ----------------- A Partnership deed also known as partnership agreement forms the basis of partnership can be both oral and written in nature. A Partnership deed documents in detail the rights, duties and obligations of each partner participating in the business venture. In other words a Partnership deed contains the `terms and conditions of the partnership` which can be modified at any time with the mutual consent of all partners. It helps in preventing and resolving disputes among partners and mitigates chances of conflict. As per the **Indian Partnership Act, 1932**, Registration of Partnership Firms is optional though if the Partnership deed is not registered it will not be legally enforceable. The minimum requisites essential in all partnership deeds are- - Name and address of the firm and its partners - Nature of the business - Duration of partnership - Investment details of partners - Profit sharing ratio among partners
PARTNERSHIP DEED A partnership deed can be defined as a document that is prepared to explain important points so that the chances of clash among partners are minimized to a great extent. ” Whenever a partnership is formed, the partners are bound in two kinds of responsibilities. One is the individual responsibility of each partner and the other is the collective responsibility of all the concerned partners. The acts of partners in normal course of business unite the firm. If the partners work with understanding and collaboration, the company is sure to function flawlessly. If there is mistrust among them, conflicts are bound to surface every now and then. It is because business is so complex a job that various kinds of decisions are to be taken almost on a daily basis. The past experience of partnership firms show that there are disputes among partners over countless things and this results in the shutting down of the business. So, a partnership deed can be defined as a document that is prepared to explain important points so that the chances of clash are minimized to a great extent. Such a document consists of all the significant clauses like name of the business, contribution of capital, allocation of profit and the like. Thanks