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What is the use of jurisdiction clause in a partnership deed?

Answer and explanation

Correct answer: To state where disputes will be settled

A jurisdiction clause identifies the court or legal forum whose territorial authority may apply when a dispute cannot be settled internally. The governing concept is procedural certainty: partners know where a legal proceeding may be filed or heard, subject to applicable law and the validity of the clause. This can reduce delay, confusion, and arguments about the proper place for litigation. Therefore, option A is correct because the clause states the place or legal jurisdiction for handling disputes. It does not automatically increase the firm’s profit, give the partnership control over a bank, or reduce the quality of goods. Those matters are unrelated to the procedural purpose of jurisdiction.

Related tags

JurisdictionDisputePartnership DeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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