In a question, the deed and the Partnership Act rules give different results. Which will be applied first?

Correct answer: Clear term of the deed

The direct answer is option A: apply the clear term of the deed. Partnership rules usually work in two stages. First, check whether the partners have made a clear agreement in their deed. If they have, that agreed term governs the accounting relationship, subject to applicable law. Only when the deed is silent or incomplete do the default provisions of the Partnership Act fill the gap. Option A is correct because a clear contractual provision is considered before a default rule. Option B is wrong because the general Act rule is not automatically used when the deed has already settled the matter. Option C is wrong because a bank’s internal rules govern banking transactions, not the partners’ agreement about profit, salary or interest. Option D is wrong because customers have no authority to choose the partners’ accounting terms. The correct sequence is: read the deed, find a clear clause, apply it; if no clause exists, apply the statutory default. This principle prevents students from using a general rule when a special agreement is present. Memory cue: agreement first, default law when silent.