Which of the following is not a feature of a partnership deed?

Partnership deed can be oral

The correct answer is option 1- Partnership deed can be oral.

A partnership agreement may legally be oral, but when we talk about a partnership deed, it specifically refers to a written document.

• Option 1 (Not a Feature / Correct Choice): This statement is conceptually false. A partnership deed is strictly a written document, meaning it cannot be oral.

• Option 2 (Feature): This is a defining trait. A partnership deed refers to the written document containing the terms and conditions of partnership.

• Option 3 (Feature): Since it outlines the profit-sharing ratios, salaries, interest on capital, and duties of each partner, it serves as the primary legal reference to resolve any internal conflicts or misunderstandings.

• Option 4 (Feature): A written, signed, and stamped partnership deed is a valid legal instrument that can easily be produced as reliable documentary evidence in a court of law during legal disputes.

NCERT: "Partnership comes into existence as a result of agreement among the partners. The agreement can be either oral or written. The Partnership Act does not require that the agreement must be in writing. But wherever it is in writing, the document, which contains terms of the agreement is called ‘Partnership Deed’. It generally contains the details about all the aspects affecting the relationship between the partners including the objective of business, contribution of capital by each partner, ratio in which the profits and the losses will be shared by the partners and entitlement of partners to interest on capital, interest on loan, etc. The clauses of partnership deed can be altered with the consent of all the partners. The deed should be properly drafted and prepared as per the provisions of the ‘Stamp Act’ and preferably registered with the Registrar of Firms... "