What is the dispute settlement clause in a partnership deed for?

Correct answer: To resolve partners’ disagreements

A dispute-settlement clause establishes the agreed method for dealing with disagreements among partners. It may require discussion, mediation, arbitration, or another lawful procedure before the matter is taken to court. The clause can identify the authority or process to be used, the place of proceedings, and the way costs or decisions will be handled. This gives partners a predictable route and may reduce delay, expense, and disruption to the business. Option A is correct because the clause addresses conflicts between partners. Increasing customers, distributing a bank’s profit, or hiding the price of goods is unrelated to dispute resolution.