Having a partnership deed is very Important and also recognized by law. Partnership deed is desirable because of the following reasons:
- It regulates the rights, duties, and liabilities of each partner.
- It helps to avoid any misunderstanding amongst the partners because all the terms and conditions of the partnership have been laid down beforehand in the deed.
- Any dispute amongst the partners may be settled easily as the partnership deed may be readily referred to.
- Availability of some benefits under different law.
Hence, it is always the best course to have a written document (partnership deed) instead of oral agreements.