Importance of partnership deed


Importance of partnership deed


  • It controls and monitors the rights, responsibilities and liabilities of all the partners
  • Avoids dispute between the partners.
  • Avoids confusion on profit and loss distribution ratio among the partners.
  • Individual partner’s responsibilities are mentioned clearly.
  • Partnership deed also defines a remuneration or salary of the partners and working partners. However, interest is paid to each partner who has invested capital in the business.

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