Question

Why is it considered important to have a written partnership deed?

Answer 1

Answer:

Helps Avoid Conflicts: A Partnership Agreement helps to avoid conflict which may arise between partners. ... Written Record: By entering a formal, written agreement, there is little scope left for things to get messy at a later stage into the business. Legally Binding: A Partnership Deed is a legally binding document.

Answer 2

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Partnership firm is an association between persons to carry out a business. The partners make an agreement to carry out the business which is known as partnership agreement. It states the agreed share of the profits of the business which might be carried out by all or by anyone of them acting on behalf of others.