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How should a change in partnership deed be made?

Answer and explanation

Correct answer: With partners consent

A partnership deed records the agreement among the partners, so a change to its mutually agreed terms should ordinarily be made with the consent of all partners. The governing concept is mutual agency and contractual agreement: no individual partner should unilaterally alter rights, duties, profit-sharing arrangements, capital terms, or borrowing limits that bind the others. The change should preferably be recorded in a written supplementary deed or other legally valid document, dated and signed by the partners, with required formalities followed. Thus option A is correct. A customer has no authority to amend the partners’ agreement, a bank normally cannot impose such an amendment, and an undisclosed change creates uncertainty and future disputes.

Related tags

Change In DeedConsentPartnership DeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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