Home (https://lawsisto.

com/welcome/newlawsisto)
/ Deeds & Drafts / DEED-OF-PARTNERSHIP-BETWEEN-TWO-PARTNERS

DEEDS & DRAFTS Back (https://lawsisto.com/deeds-drafts/MQ==)

DEED OF PARTNERSHIP BETWEEN TWO PARTNERS

Date

___________________________________________________________ (hereinafter called the

'First Party')

AND

___________________________________________________________ (hereinafter called the

'Second Party').

WHEREAS the parties hereto have agreed to commence business in partnership and it is
expedient to have a written instrument of partnership.

WHEREAS the parties hereto have mutually agreed to carry on the business of___________(here
describe the business) at_________(here specify the place or the principal place of business) and
to share the profits and losses of the said business in partnership between themselves and they
have with that object constituted themselves into a firm of partners under the name and style of
M/s_________(here give the name of the firm).

The terms and conditions agreed to by and between the parties hereto witnesses:

1. The duration of the firm shall be, to begin with, a period of_______years or such further or
lesser period as the parties may choose to mutually agree.

2. The capital of the firm for the time being is fixed at Rs______(Rupees________) only which
has been contributed by the partners as follows namely:

First Party____________

Second Party________

(In case minor is admitted to the benefits of the partnership the capital contributed by him, if
any) Provided that the partners may by mutual agreement increase or decrease the capital and
their respective contributions thereto. The partners by mutual consent may raise capital by way
of loans if considered expedient.
3. The partners shall distribute the net profits and bear the losses in the following ratios: First
Party__________ Second Party_________

4. The partner, shall be entitled to withdraw out of the profits, money not exceeding
Rs………………… in each month adjustable against the account of the respective partners at the time
of annual accounting.

5. The First party shall make available to the firm the shop premises in which the business of the
firm shall be carried on, situated at________and which shop or premises is in his occupation as a
tenant from month to month paying a monthly rent of Rs________ to Shri_________ and shall
hereafter hold the said shop or premises in trust for the partnership for which rent shall be paid
out of the partnership from the date mentioned in para 1 above.

6. The said rent, and all taxes, duties, repairs and outgoings in respect of the said shops or
premises or other place or places of business of the partnership shall be paid out of the
partnership.

7. No apprentice, clerk or servant shall be employed or dismissed without the consent of all the
partners.

8. The firm shall regularly maintain in the ordinary course of business a true and correct account
of all its incoming and outgoings and also all its assets and liabilities in proper books of accounts
which shall ordinarily be kept at the firm's place of business.

9. Immediately after each___________ day of_________in every year, the partners shall take an
account and valuation of the effect, credits and liabilities of the partnership. Such accounts and
valuations shall after mutual examination be drawn up in duplicate and signed by the partners,
we shall each retain a copy. The entries in such signed accounts shall be final and binding
between the parties. The profits or loss, as the case may be, shall be divided as aforesaid, after
the signing of such account.

10. The authority of the partners, individually shall be limited to the following:

(a) No partner shall individually purchase goods for the partnership without consulting the other
and obtaining his consent for purchases of the value exceeding Rs________

(b) No partner shall singly bind the partnership by taking any loan or raising any money whether
with or without security to the extent of more than Rs_________

(c) No partner shall commit the partnership without obtaining the written consent of the other, to
any undertaking which involves the partnership financially to the extent of more than
Rs_________

(d) All law suits shall be filed and defended by the partnership by the partners acting jointly in all
cases which involve the partnership financially to the extent of more than Rs_________

11. The partnership shall be deemed to be continuing on the admission of a fresh partner or
partners, provided the admission is on the terms herein laid down and is approved by all the
partners.

12. Every partner shall be entitled to dissolve the partnership in the event of the other
committing breach of the conditions herein covenanted. The partnership may be dissolved by a
notice in writing sent by registered post to the address herein given or such address as may be
registered from time to time with the Registrar of Firms. On the dissolution of the firm under this
clause the expelled partners shall not be liable for any loss incurred as from the date of
dissolution. But no profit or loss shall be paid or become payable except at the time of annual
accounting.

13. On the bankruptcy of any partner or on notice being given to either partner under clause 12
above or on the death and there being no major legal representative willing or capable to take
the place of the deceased partner the partnership shall terminate. The share of such partner may
be purchased by the remaining partner(s) at a valuation to be made by arbitrators or their umpire
as hereinafter mentioned. The price shall be paid in 3 equal six monthly instalments. The tenancy
right of the first party shall be valued at_____________ years' rental.

14. Upon the determination of the partnership by afflux of time, or upon its determination by any
other partner then, as soon as convenient, a full and general account of valuation shall be taken
of the property and assets and liabilities of the partnership and the property and the assets put to
sale and the debts realised and the creditors paid. The net proceeds in cash shall be equally
divided between the then partners or the partners and the legal representative or representatives
of the deceased partner; PROVIDED always, that if the proceeds are less than the liabilities the
loss shall be made good in equal shares by the then partner, or the legal representative or
representatives of any deceased partner.

15. If at any time any dispute, doubt or question shall arise between the partners, or their
representatives either on the construction of these presents, or respecting the accounts,
transaction, profits or losses of the business or otherwise in the relation to the partnership then
every such dispute, doubt or question shall be referred to arbitrators chosen by each of the
partners and the representatives of their umpire to be appointed in the manner provided by law
and such reference shall in all respect, as to the mode and consequence thereof conform to the
provisions in that behalf contained in the Arbitration and Conciliation Act, 1996 or any statutory
modification thereof.

IN WITNESS WHEREOF the said A.B. and C.D. have hereto at___________ signed the day and
the year first above mentioned.

WITNESSES:

Sd/- A.B.

Sd/- C.D.

86540
Lawyers Network
 103860
Users

630
Cities Serving

114
Law Schools Network

59824
Law Students Network

About us

Company Profile (https://lawsisto.com/companyprofile)

Indian Major Laws

Indian Constitution (https://lawsisto.com/indianconstitutions/)

IPC (https://lawsisto.com/indianpenalcodes/)
CrPC (https://lawsisto.com/crpc/)
CPC (https://lawsisto.com/cpc)
Companies Act (https://lawsisto.com/companiesact)
Indian Evidence Act (https://lawsisto.com/indianevidenceact)
CGST Act (https://lawsisto.com/cgstact)
Limitation Act (https://lawsisto.com/limitation_act)

Policies

Terms of Use (https://lawsisto.com/terms)

Privacy Policy (https://lawsisto.com/privacy)
Refund & Cancellation (https://lawsisto.com/refund)

Ads & Media

Resource Sharing (https://lawsisto.com/resource-sharing)

Advertiser(Sign Up/Login) (https://lawsisto.com/user)
Media
 Careers

Internships (https://lawsisto.com/internship)
Jobs (https://lawsisto.com/jobs)
Student Journalists (https://lawsisto.com/journalist)

HELP & SUPPORT

Contact Us (https://lawsisto.com/contact)
Grievances (https://lawsisto.com/grievances)
Test (https://lawsisto.com/test)

News

Legal News (https://lawsisto.com/paralegal)

Post Article (https://lawsisto.com/paralegal)
Post Interview (https://lawsisto.com/paralegal)

Legal Library

Central Acts (https://lawsisto.com/Central-Acts/A)

Deeds Drafts [1127 ] (https://lawsisto.com/deeds-drafts/MQ==)
Legal Maxims (https://lawsisto.com/legalmaxims)

Connect

(https://www.facebook.com/lawsisto/)

Lawsisto Direct (https://lawsisto.com/)

DISCLAIMER

Copyright © Lawsisto Private Limited. All rights reserved.

Unless otherwise indicated, all materials on these pages are copyrighted by Lawsisto Private Limited. All rights reserved.
No part of these pages, either text or image may
be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy
and Content Policies.