Question

Why is it considered better to make a partnership agreement in writing?

Answer 1

Partnership is the relation between 2 or more person. The relationship between partners is determined through a document called partnership deed.

Partnership deed need not be in writing.But it is advisable to be in writing to minimize the disputes if any arising among the partners. This written contract takes the form of a document and is collectively called as a partnership deed. It is a legal document signed by all the partners and contains every details of the partnership like

1. name of the partners.

2.profits sharing ratio.

3.powers and duties of the partners.

4.Term of duration of partnership.

5.Interst on capital,loans,drawings etc.