Partnership contract is also called as partnership agreement. This agreement contains all the written terms and conditions for the partnership. The agreement specifies the duration of the partnership, profit sharing ratio, and provisions for admission/retirement/ death of the partners etc. To indicate: if partners can limit the rights of a partner and effect of such agreement. Partners can limit the rights of a partner by entering clause into the partnership agreement. The agreement is always binding on all the partner and the clause restricting the rights of a partner shall also be binding on outsiders. For example of three partners of a partnership decided to withdraw the right of a partner to purchase goods from suppliers, then the agreement shall be binding on all partners and the supplier as well. It means the partner cannot purchase goods and suppliers should not sell goods to the partner.

8th Edition

ISBN: 9781259662966

Author: John J Wild

Publisher: McGraw-Hill Education

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