Question

Partnership deed should be drafted and prepared as per:

• A. Provision of Partnership Act
• B. Companies Act
• C. Registrar of Firms
• D. Provisions of the Stamp Act

Hint:

Always consult the Indian Partnership Act, 1932 when drafting or interpreting a partnership deed.

Answer 1

The Correct Option is A

Legal Framework for Partnership Deeds:
A partnership deed, serving as the constitution of a partnership firm, must align with the foundational law governing partnerships.
The Indian Partnership Act, 1932 This Act furnishes the legal guidelines for creating, managing, and dissolving partnerships.
It specifies the rights, duties, and liabilities of partners unless otherwise agreed upon in the partnership deed.
Why Other Acts Are Not Applicable:
The Companies Act pertains to the formation and regulation of companies, not partnerships. The Registrar of Firms deals with the registration of partnerships, but it doesn't dictate the content of the partnership deed itself. The Stamp Act ensures that the partnership deed is properly stamped, which affects its admissibility as evidence, but it doesn't determine the clauses of the deed.
Therefore, a partnership deed is drafted primarily in accordance with the provisions outlined in the Partnership Act.