Question

Is partnership deed valid if it is oral?

Answer 1

Hi,
​Yes, Oral Partnership Deed is valid. Oral Partnership Deed is an old-fashioned style, where a mere handshake between the two parties guarantees the assurance of honesty and carrying-out the partnership business as per the orally decided terms and conditions. Oral Partnership Deed is legal in the eyes of law and carries weights if the same can be proved in the court of law. In this regards, oral agreements are decided in the presence of other people (who are neutral and unbiased towards both the parties). In case of any dispute or breach of terms, these people are called for as witnesses.