Question

If the partnership agreement, is in ________ it is known as a 'Partnership Deed'.

• A. Verbal
• B. Written
• C. Implied
• D. Verbal, written or implied

Answer 1

Answer: (B)

Written

According to the Partnership Act, 1932 the relation between the partners of a partnership firm can only be created through a mutual agreement between the partners which will be presented in the manner of contract that can be verbal as well as written also. But nowadays written is given more preference due to legal requirements. The written partnership agreement which has all rules and regulations implied on all the partners mention thereof is called partnership deed.