A partnership deed reflects agreement between the partners concerned on many points which are essential for the proper conduct of the business of the partnership and for further ensuring that there arise, as far as possible, no points of disputes among the partners and the various contingencies arising due to, say, admission of a new partner, dissolution of the firm, retirement of one or more of the partners, etc., etc., are duly and properly taken care of and the change over from the existing situation to the new one is smooth enough and does not bring about any problems amongst the partners.
A partnership deed, therefore, is a compendium of clauses each providing for a particular information or indicates the steps to be taken in a particular contingency, etc., etc. The object herein is to provide guidelines for drafting generally the various clauses of the partnership and attempt is made to conceive of all kinds of situations and contingencies likely to arise, as Ear as practicable. The idea behind this attempt is to help the readers to draft excellent partnership deeds by making suitable variations in the clauses suggested herein so as to meet the particular fact situations be-fore them. It is acknowledged that sufficient help is derived in the presentation of these guidance notes from the chapter on Partnership by Shri J. F. Solomon, Solicitor published in Model Deeds and Petitions published by The Chamber of Income Tax Consultants, Bombay.
The approach below will be to identify the usual provisions which must necessarily find place in a partnership deed and the specimen draft clause which should be able to meet the requirements of the partnership deed vis-a-vis the particular provisions or requirement. The various general clauses of the partnership deed will now be taken one by one.