The terms and conditions of the partnership between the partners are outlined in a partnership deed, which is an agreement between the partners of the company. A partnership deed's main goal is to clearly define each partner's responsibilities so that business operations can function smoothly.
The Partnership comes into the limelight when:
> There is an outcome of agreement among the partners.
> The agreement can be either in written or oral form.
> The Partnership Act does not demand that the agreement has to be in writing. Wherever it is in the form of writing, the document, which comprises terms of the agreement is called ‘Partnership Deed.’
> It usually comprises the attributes about all the characteristics influencing the association between the partners counting the aim of trade, the contribution of capital by each partner, the ratio in which the gains and losses will be divided by the partners and privilege and entitlement of partners to interest on loan, interest on capital, etc.
