What is a partnership deed?

A written agreement that contains the terms of the partnership agreement

The correct answer is option 3- A written agreement that contains the terms of the partnership agreement.

The Partnership Deed is a comprehensive document that outlines important details pertaining to the partnership. Partnership agreement can be oral or written. When the partners makes the agreement in written form then this document is called partnership deed. It typically includes the following information:

Firm name, address, and main business details.
Names and addresses of all partners involved.
Capital contribution of each partner.
Duration of the partnership and the accounting period.
Commencement date of the partnership.
Guidelines for operating bank accounts.
Profit and loss sharing ratio among partners.
Interest rates on capital, loans, and partner drawings.
Appointment procedures for auditors, if applicable.
Salaries, commissions, or other payments to partners.
Rights, responsibilities, and liabilities of each partner.
Handling of losses resulting from the insolvency of a partner.
Settlement of accounts in the event of partnership dissolution.
Dispute resolution methods among partners.
Procedures for admission, retirement, or death of a partner.
Any other pertinent matters related to the partnership's operations.

While the partnership deed typically covers all aspects of the partners' relationship, in cases where certain matters are not explicitly addressed, the provisions of the Indian Partnership Act, 1932 shall apply.