Partnership Agreement

In drafting Partnership Agreement, it should be kept in mind that it is intended for guidance of common man, who have no knowledge of law. Generally, the partnership agreement should contain the following:

  • Name of the Parties .
  • Nature of Business.
  • Duration of Partnership.
  • Name of the Firm.
  • Capital.
  • Share of partners in profit and losses.
  • Books of account .
  • Conduct and power of partners .
  • Death of partner .
  • Dissolution of Firm .

Checklist

  • Check whether the names and permanent addresses of partners, name of partnership firm, nature of business to be undertaken by the partnership and duration of the partnership has been stated in the partnership deed.
  • Check whether the fact of agreement between the partners to form a partnership has been stated in the deed.
    Check whether provision relating to power and duties of the partners has been clearly stated.
  • Check whether the provision providing for dissolution of firm on the happening of certain contingencies has been made.
  • Check whether the mode of service of notice/ letters to the partners has been given in the deed.
    Check whether proper stamp duty as applicable on the Partnership deed has been paid.