Importance of Partnership Deed

Partnership Deed is an important legal document which defines relationship among the partners. It is important to have written partnership Deed to avoid and settele possible disputes. It is useful because:

• It governs the rights, duties and liabilities of each partner. 
• Disputes arising, if any, among the partners are settled on the basis of Partnership Deed, it being a written contract. 

Is it essential to have a Partnership Deed?

No,it is not essential but desirable to have a Partnership Deed. In case Partnership Deed does not exist, provision of the Indian Partnership, Act, 1932  will be applied.