Partnership Deed

Partnership Deed is a legal document that outlines the terms and conditions of a partnership between two or more individuals or entities. It sets out the rights, responsibilities and obligations of the partners, and regulates the management and governance of the partnership.

In India, partnerships are governed by the Indian Partnership Act, 1932, which sets out the legal framework for partnerships. A partnership deed is not a mandatory requirement under the Act, however, it is a good practice to have one in order to avoid disputes among partners.

A Partnership Deed typically includes the following key elements:

• Names of partners: The names of the partners, their addresses and the nature of their business.
• Capital contribution: The amount of capital contributed by each partner, the time and manner of its contribution, and the interest on capital.
• Profit and loss sharing: The ratio in which the profits and losses of the partnership will be shared among the partners.
• Management and governance: The rights and responsibilities of the partners in relation to the management and governance of the partnership, such as the appointment of partners as managers or agents, and the decision-making process.
• Dissolution: The terms and conditions of the dissolution of the partnership, such as the rights and obligations of the partners in the event of dissolution, and the process for winding up the partnership.
• Arbitration: The process and mechanism for resolving disputes between the partners, such as arbitration or mediation.

It is important to note that Partnership Deed is a binding contract between the partners and the partnership, and it is enforceable by the court. It is a useful tool to regulate the management, governance, and ownership of a partnership, and to protect the interests of the partners. It is advisable to consult an experienced corporate lawyer to help draft and review a Partnership Deed that is tailored to the specific needs of the partners and the partnership.