Agreement of Partnership, also known as a Partnership Deed, is a document that outlines in details the rights and responsibilities of all Partners who sign the deed to carry on the business to earn profit. The deed contains various general clauses along with the specific once, if required based on the Act.
The deed must be duly signed by the partners, stamped and notarised. Any alteration in partnership deed can be made with the mutual consent of all the partners. Each partnership agreement differs based on business objectives.
A deed of partnership will ensure that all parties know exactly what their responsibilities are within the partnership along with what their particular powers are with regard to the partnership. It helps the business and partners to know their responsibilities and rights.
Below mentioned is the list of clauses in the partnership deed:
- Date of entering into the Agreement
- The name of the partnership firm
- The name and address of the partners respectively
- The nature of business activity of partnership firm
- The amount of capital contributed by each partner
- The profit sharing ratio among partners
- The amount of drawings that can be made by each partners
- Tenure of partnership
- The rights and duties of partners
- The interest to be allowed on capital and charged on drawings
- There should mention the name of the Partner who will be held responsible for management & day to day activity
- There should mention the period before which the notice can be given in case of Retirement of a partner
- The name of the person to whom the problem is to be referred as their Arbitrator and Jurisdiction City
- Settlement of amount on Dissolution of firm
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