Explain why it is considered better to make a partnership agreement in writing.
Explain why it is considered better to make a partnership agreement in writing.
As per Partnership Act, 1932, it is not necessary that a partnership agreement must be in writing but still it is always suggested that it should be in written form. Because today there are very good relationship among the partners but in future there may be any dispute regarding any issue a written partnership agreement will help in avoiding disputes and misunderstandings among the partners.
In this way a written partnership deed is more desirable than the oral agreements. A written partnership agreement ensures the smooth functioning of the business of the partnership firm. It also helps in settling the disputes among the partners. Moreover a duly signed and registered partnership deed can be used as evidence in the court of law. Therefore, it is desirable to form partnership deed in writing because of the merits associated with written documents over its oral counterparts.
As per Partnership Act, 1932, it is not necessary that a partnership agreement must be in writing but still it is always suggested that it should be in written form. Because today there are very good relationship among the partners but in future there may be any dispute regarding any issue a written partnership agreement will help in avoiding disputes and misunderstandings among the partners.
In this way a written partnership deed is more desirable than the oral agreements. A written partnership agreement ensures the smooth functioning of the business of the partnership firm. It also helps in settling the disputes among the partners. Moreover a duly signed and registered partnership deed can be used as evidence in the court of law. Therefore, it is desirable to form partnership deed in writing because of the merits associated with written documents over its oral counterparts.
