Question : Forming a partnership deed is
Option 1: mandatory
Option 2: mandatory in writting
Option 3: not mandatory
Option 4: None of the above
Correct Answer: not mandatory
Solution :
The Indian Partnership Act of 1932 does not require the drawing up of a partnership deed. Nevertheless, having a formal partnership deed in place is strongly advised. The rights and obligations of the partners, the profit-sharing ratio, the capital contributions made by each partner, and the duration of the partnership are all outlined in a partnership deed, which is a legal instrument. By outlining the rules of the partnership in detail, a written agreement helps avoid disagreements or misinterpretations between partners.
Hence, the correct option is 3.
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