What is Partnership Deed or Partnership Agreement and discuss Main Provisions of partnership Deed or Partnership Agreement
Partnership Agreement or Partnership Deed :-
In the Partnership agreement terms and conditions relating to partnership and the regulations governing to its internal management are included. This agreement may be written or oral. But it is necessary that it should be in writing.
In other words it is a document in which the relations of partners one another are clearly written.
Following are the important provisions of partnership deed.
1. Date :-
Date of starting the business should be written on it.
2. Name :-
Name of the firm under which the business is going started.
3. Location :-
Location of the business should be also written that where it is going to start. Allotment of the place for head office and branches should be mentioned it.
4. Duration :-
Duration of partnership is for indefinite period or for definite period. It should be also written.
5. Nature of the Business :-
Nature of the business should be clear in it.
6. Capital :-
Total amount of capital and share of each partner in capital is also an important point of deed.
7. Salary :-
The amounts of any salary payable to partners, should be mentioned in it.
8. Ratio of Profit :-
Each partner rate ratio of profit and loss sharing should be clear in the partnership agreement.
9. Rights and Duties :-
There is also a provision of rights and duties of each partner.
10. Entry and Exit Method :-
Procedure to be followed for withdrawal and methods of admitting of new partners.
11. Dissolution Case :-
In case of dissolution of the firm a special provision to be followed.
12. Audit of Accounts :-
Audit and account preparation provisions are also available in it.
13. Settlement in case of Dissolution :-
At the dissolution of a firm there is a provision of settlement of accounts.
14. Arbitration :-
In case of disputes provision for arbitration is also available.
15. Witness :-
The witness of agreement provision is also found in it. By the mutual consent of the partners any other clause may be included in it at any time.