Partnership Deed

Two friends in Vashi decide to open a catering business together. One puts in money, the other puts in his kitchen and his time. They shake hands and start. Six months later they disagree about who can sign cheques, who gets what share of the profit and what happens if one wants out. Nothing is written down. Which rules apply, and how much of that argument could a partnership deed have prevented?

In two minutes

A partnership deed is the written contract by which persons who have agreed to share the profits of a business carried on by all or any of them acting for all fix their mutual rights and duties; the Indian Partnership Act 1932 supplies default rules that apply only subject to contract, so the deed's job is to replace those defaults with terms the partners actually want.

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