![Real Test Of Partnership [Sec. 6]
Partnership Deed](https://image.slidesharecdn.com/si5jloucqcqqt4vb8ixl-signature-54f393465b175e68c2c3a09c96b79d7e5c5ba7a839f0490bd6034431d635fdf5-poli-190529092742/85/Partnership-Deed-1-320.jpg)
![Real Test of Partnership [Sec. 6]
The true test of partnership is the existence of “Mutual Agency”
relationship, i.e. the capacity of a partner to bind other partners by
his acts done in firm’s name and be bound by the acts of other
partners.
Sharing of profit is an essential element of partnership but it is not
a conclusive proof of partnership.
Sharing of profit is Prima facie evidence.](https://image.slidesharecdn.com/si5jloucqcqqt4vb8ixl-signature-54f393465b175e68c2c3a09c96b79d7e5c5ba7a839f0490bd6034431d635fdf5-poli-190529092742/85/Partnership-Deed-2-320.jpg)
Partnership Deed
- 1. Real Test Of Partnership [Sec. 6] Partnership Deed
- 2. Real Test of Partnership [Sec. 6] The true test of partnership is the existence of “Mutual Agency” relationship, i.e. the capacity of a partner to bind other partners by his acts done in firm’s name and be bound by the acts of other partners. Sharing of profit is an essential element of partnership but it is not a conclusive proof of partnership. Sharing of profit is Prima facie evidence.
- 3. Thus partnership can be presumed when There is an agreement to share the profits of business and The business is carried on by all or by any of them acting for all.
- 4. A partnership is formed by an agreement. This agreement may be in writing or oral. though the law does not expressly require that the partnership agreement should be in writing, it is desirable to have it in writing in order to avoid any dispute with regard to the terms of the partnership. The document which contains the term of a partnership as agreed among the partners is called “partnership deed”. The partnership Deed is to be duly stamped as per the Indian Stamp Act, and duly signed by all the partners. Partnership Deed
- 5. Name of the parties Nature of business Duration of partnership Name of the firm Capital Share of partners in profits and losses Banking, Account firm Books of account A partnership deed should contain the following clause
- 6. Powers of partners Retirement and expulsion of partners Death of partner Dissolution of firm Settlement of disputes
- 7. Property of the Partnership Firm The property of the firm includes all property and rights and interests in property originally brought into the stock of the firm, acquired or by purchase or otherwise, by or for the firm and in the course of business of the firm, and includes also the goodwill of the business.
- 8. When there is no contract, the property of the firm includes : All properties, rights and interests are brought into the common stock of the firm. Property acquired by purchase of the firm Property acquired for the purpose and in the course of business of the firm. Property purchased with money belonging to the firm.
- 9. Thank You