— Kishore V, SME and ACW at Edumarz
- A partnership agreement does not have to be in writing according to the Partnership Act of 1932, although it is usually recommended that it be in writing.
Because the partners’ relationships are currently extremely excellent, but there may be a conflict in the future over any subject, a written partnership agreement will aid in preventing arguments and misunderstandings among the partners.
In this sense, a written partnership agreement is preferable to oral agreements.
A formal partnership agreement guarantees that the partnership firm’s operation runs smoothly.
It also aids in the resolution of partner issues.
A partnership deed that has been officially signed and registered can also be used as evidence in a court of law.
Because of the advantages of written papers over their oral counterparts, it is preferable to draught a partnership deed in writing.