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If a deed term and the general rule of Partnership Act conflict what is followed first?

Answer and explanation

Correct answer: The term of deed

Direct answer: Option A, the term of the deed. The Partnership Act contains default rules for matters on which partners have not agreed. The partnership deed records the partners’ own agreement, so an applicable deed term is normally followed before a default statutory rule. Reasoning: identify the subject; check whether the deed contains a clear term; if it does, apply that term; if it is silent, use the Act’s default rule. Option A is correct. Option B is wrong because a shop rule cannot override the partners’ contract. Option C is wrong because a customer has no authority to decide partners’ internal rights. Option D is wrong because an employee cannot order how partners divide profits or bear obligations. This does not mean every private term can defeat mandatory law; compulsory legal requirements still matter. For this school question, the intended principle is that the deed governs where it provides an agreement. Memory cue: deed first for agreed matters, Act’s default rules when the deed is silent.

Related tags

Deed Vs ActAgreementPriority

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