PRECEDENTS

1. Deed of partnership between two persons setting up a new

business.
This deed of partnership made on the day of between AB, etc. of the one part
and CD, etc. of the other part.
Witness and it is herby mutually agreed that the said parties shall become
partners upon the following terms.
1. Business and its Place
The partnership business shall be that of
and shall be carried
on at
or at such other place or places as the partners may from
time to time agree upon.
2. Name
The name of firm shall
3. Term
The partnership shall commence on the
day of
and shall
continue for a term of
years determinable nevertheless as
hereinafter provided (or, and thereafter until determined as
hereinafter provided).
4. Capital
The capital of the partnership shall be a sum of RS.
And
shall be provided by and belong to the partners in equal shares (or,
in the following proportion).
If at any time hereafter any further capital shall be required for the
purposes of partnership the same shall, unless otherwise agreed, be
contributed by the parties in the said shares (proportion).
5. Interest on Capital
Interest at the rate of
percent per annum shall be paid to
each partner on the capital for the time being standing to his credit
out of the grows profit of the business and such interest shall be
cumulative so that any deficiency in one year shall be made up out
of the grows profits of any succeeding year or years.
6. Profits and Losses
The profits and losses of the firm (including loss of capital) shall be
divided between and borne by the partners in proportion to the
capital for the time being credited to them in the partnership books.
7. Drawings by partners
Each partner shall be entitled to draw out of the partnership any
sum or sums of money not exceeding Rs.
Per month for
this own use, such sums to be duly accounted for and on each

succeeding settlement of account and division of profits of the

partnership and any access of the drawings found on each
settlement shall be refunded (with interest at
percent per
annum).
8. Books of Account
All necessary and proper books of account shall be keep properly
posted up and shall not be removed from the places of business
without the consent of the partners.
9. Annual Accounts
On
the day of each year during the continuance of the
partnership an account shall be taken of all the capital, assets and
liabilities and of the profits and losses of the partnership so that
actual receipts and payments alone shall be taken into account (or,
including therein the profits earned or losses incurred but not
actually received and paid) for the preceding year and shall be
signed by each partner. Such account when signed shall be binding
on the partners (or, A copy of such account shall be famished to
each partner who shall be found thereby) unless some manifest
error shall be discovered within
months in which case such
error shall be rectified. As soon as the annual general account shall
have been signed the partners the net profits (if any) of the
business shall be divided between them in accordance with the
provisions of this deed (provided that if either partner refuse to sign
the general account within assigning any valid reason for such
refusal, a copy of the general account shall be posted to him by
registered post and the account shall be deemed to be sign by him
on the such posting) .
10. Manager
The said AB shall be the manager of the said partnership business
and shall devote his whole time and attention to the management
and shall receive a salary of Rs.
Per mensem for his
services (and he shall manage the business according to the best
his ability and judgment).
11. Duties of Partners
Each partner shall
a) Diligently attend to the business and devote his whole time
and attention thereto.
b) Punctually pay his separate debts and indemnify the other
partners and the assets of the firm against the same and all
expenses therefore.

c) Upon every reasonable request, inform the other partner of all

letters, accounts, writings and other things which shall come
to his hands or knowledge concerning the business of the
partnership.
12. Acts Forbidden
Neither partner shall without the concern of other:
a) Either directly or indirectly engage or be concerned or
interested in any other business or occupation.
b) Take any apprentice or hire or (expect in cases of grows
misconduct) dismiss any agent of the servant of the firm.
c) Land any of the moneys or deliver upon credit any of the
goods of the firm to any person or persons whom the other
partner shall have previously forbidden him to trust.
d) Except in the ordinary course of business give any security or
promise for the payment of money on account of the firm.
e) Stand surety or furnish guarantee for any person or do or
knowingly suffer anything whereby the partnership property
may be endangered.
f) Assign or charge or his share in the assets or profit of the firm.
g) Draw or accept or endorse any bill of exchange or promissory
note on account of the firm.
h) Sign any cheque or behalf of the firm for a sum exceeding Rs.
i) Except in the ordinary course of trade, dispose by pledge, sale
or otherwise any part of the partnership property.
j) Buy order or contract for any immovable or any goods or
articles for the use of the firm exceeding the value of Rs.
k) Undertake any journey or voyage on account of the firm
necessities an absence of more than
days from
the head office of the firm.
13. Notice to Determine
After the expiration of said term of
years the
partnership may be determined by either party giving to the other
not less than
months notice in writing (expiring on any
anniversary of the commencement of the partnership) and on the
notice the partnership shall determine accordingly.
14. Determination in Certain Events
If either party shalla) Commit an act of insolvency
b) Become physically or mentally unfit to attend to the business.
c) Do or suffer any act which would under the law be a ground
for dissolution of the partnership by the court, then and any
such case the other partner may within
slender

months after becoming aware therefore by notice in writing

determine the partnership and in that case he shall have the
option (to be exercise at the time of giving such notice) of
purchasing the share of the other partner in the capital and
assets of the business upon the like term as are set forth in
the next clause hereof in relation to purchase to buy a
surviving partner of the share of a deceased partner.

15. Options to Purchase Share or Retiring, Deceased or

Insolvent Partner
If during the continuance of the partnership (either, if there are only
two partners) partner shall retire or die or become insolvent then
the remaining partner or partner shall have the option (to be
exercised by notice in writing to the retiring partner or to the legal
representatives of the deseed partners or to the receiver of his
estate as the case may be within a month after the retirement
death or insolvency) to purchase the share of other partner at the
date of this retirement, death or insolvency in the capital and assets
of the partnership on the following terms.
a) The purchase price shall be the amount at which such share
shall stand in the last balance sheet which shall have been
prepared prior to the retirement, death or insolvency shall
occur before the taking of the first annual general account the
amount credited to him as his share in the capital up to the
date of his retirement, death or insolvency, plus the amount
of any further capital thought by him into and credited to him
to him in the book of the partnership, plus the amount of
interest on the aforesaid sums at the rate of
percent
per amount from the date of the last general account or from
the commencement of the partnership as the case may be or
in the case of further capital from the date when the same
was credited up to the date of the retirement, death or
insolvency (or a sum equal to the amount of the share
accounts of the said partner since the taking of the last
general account or the commencement of the partnership as
the case may be) minus any drawings by the said partner
during the current year of the partnership such drawings

being debited far as possible against the sum payable in

present current profits.
b) Of the purchase price the sum payable as interest or current
profits shall be paid on the exercise of the option --------- equal
installments at intervals of
month from the --------exercise of the option with interest at
percent
per annual month such date.
c) The purchasing partner shall enter into ----------indemnify the
said partner or his legal --------------- or the receiver ------estate,
the case, may be from the------, engagements and liabilities of
the partnership both existing and future.
d) The serving partner shall secure the payment of the purchase
price and interest and the performance of the said
--------------indemnity by a floating charge on the assets
present and future of the said business.

16. Dissolution
If the option to purchase is not exercised as----------or if the
partnership shall------maintained on expire during the joint lives the
partners the partnership shall be wound up and the assets
distributed as provided in the Indian Partnership Act. 1932.
17. Notice
Any notice hereby required or authorized to be give on any of the
said partner shall be sufficiently given by leaving same and dressed
to him at the principal place of business of the said firm or---sending the same by registered post to his usual or last known
places.
18. Arbitration
All disputes and questions in connection with partnership or this
deed arising between the partners or between any one of them and
the legal representatives of the other or others or between their
respective legal representatives and whether during or after the
partnership shall be referred to the arbitration of three arbitrators,
one to be appointed by the said arbitrators.