Commerce: Partnership Deed

Partnership Deed (Agreement)

• Drafted by partners.
• Contains:
• The objectives of forming the partnership.
• The amount of capital each partner is going to contribute towards the partnership.
• Duties, responsibilities and rights of each partner.
• Terms and conditions under which the partnership operates.
• Circumstances under which the partnership can be terminated.
• Methods employed to settle disagreements.
• The ration in which profits and losses are to be shared.
• Salaries and bonuses to be paid to each partner if any.
• Interest rates charged on capital and drawings.
• The name of the partnership.
• Importance:
• used to form a partnership.
• Used instead of the Partnership Act.

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