Articles of Partnership - Partnership Law
However a partnership need not be formed through written agreement, it is accustomed for 'Articles of Partnership' for be drawn up, signed through all the partners. Hence Articles will govern the relationship of the partners like "inter se" and will compose a contract between them there.
Therefore the Articles of Partnership will generally enclose the following eleven clauses like:
- Whether the nature of the business.
- The property and capital of the firm, and the respective capitals of every partner.
- The sharing of losses and profits.
- The rules as to interest on capital may like drawings.
- The provision to proper accounts, and the auditing thereof.
- The powers of every partner.
- The grounds to dissolution.
- The scheme of ascertaining the charge of goodwill on retirement or death so are;
- Whether the mode of computing the amount payable to deceased may like an outgoing partner.
- The expulsion's power.
- The arbitration clause.