Question

State Whether the following Statement is True or False:

It is compulsory to have a partnership agreement in writing.

Answer 1

The statement is false.

Explanation:

Under the Indian Partnership Act, 1932, a partnership agreement does not have to be in writing. A partnership can be created through an oral agreement as well. However, having a written partnership deed is strongly recommended because it helps clearly define the rights, duties, profit-sharing ratio, and other terms, reducing the likelihood of disputes.