Divya and Tarunika are graduates in Fashion technology. They wanted to pursue their career as entrepreneurs by starting a partnership firm in the name of DITAARA to bring out their uniqueness in fashion for women. They entered into an agreement as per the Partnership Act, 1932. Their advocate advised them that their agreement can either be in oral or in written form. But he also insisted that it is always desirable to have it in writing so as to avoid misunderstandings and unnecessary litigations in future. Identify the concept described in the above context.

Written agreement Contract Partnership deed None of the above.

Partnership deed

Partnership is an agreement between persons to carry on a business, entered into either orally or in writing. It is always desirable to have a written agreement so as to avoid misunderstandings and unnecessary litigations in future. When the agreement is in written form, it is called a 'Partnership Deed'. It must be duly signed by the partners, stamped and registered. Any alteration in one partnership deed can be made with the mutual consent of all the partners.