Question

If the Partnership Deed does not specify the rate of interest chargeable on drawings, will the interest still be charged? If yes, at what rate? If not, why?

Answer 1

Partnership deed is the legal document signed by all the partners and contains all the terms and conditions on which the partnership is formed.

If the partnership deed is silent regarding some provision, it cannot be enforced.

So,no interest on drawings is to be charged if the partnership deed does not specify the rate of interest chargeable on drawings.