Partnership agreement or Partnership Deed must including following details :-
A. While drafting a partnership agreement/deed there are some important points to be kept in view
• There must be at least two major contracting parties.
• Total number of partners should not exceed twenty.
• Name of the Firm under which the business is to be conducted.
• Nature of the business to be conducted by the partners.
• Location of the business where it is to be opened and branches, if any.
• List of partners, their names, addresses of the partners with Computer National Identity Card Nos. should also be placed in the agreement.
• The amount of any salary payable to the partners..
• The division of work among the partners for the management of the firm.
• The name of the dealing bank.
• Provisions regarding the preparation, audit and signing by the partners of annual accounts.
• The duration of partnership whether at will or for a fixed period or a particular venture should be stated.
• The deed should indicate the share in which profits and losses are to be divided among partners.
• The amount that each partner shall be allowed to withdraw.
• Rules regarding to retirement, debt and admission of partners.
• How the value of good will of the firm will be determined.
• A provision regarding the partner who is to manage the affairs, sign cheques may be made.
• The date on which accounts are to be closed should be specified.
• Rights and duties of each partner should be mentioned.
• Settlement of accounts at the dissolution of the firm.
• In case of dispute provision should be made.
• How partnership will be dissolved.
• If the partners intend that the firm should not stand dissolved on death or retirement of a partner, a provision must be made in the deed.