Partnership deed act 1932

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Tanvi (Querist)
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24 December 2011 Can these following clauses be included in partnership??? Please refer your answer to the section if you can.

a)It has been decided by all the partners that in case of the dissolution of the firm or on retirement of the party No.2 from the business of the firm he will be entitled to recover the 51% of the value of the assets existed at the time of the retirement or dissolution and the value of the assets will be determined as book value or market value whichever is higher.

b) That in case of the dissolution of the firm or on retirement of the party no.2, the party no.1 shall not be entitled to sale or dispose off the property in any manner and Party no.2 will have a first charge on the same and Party no.2 will also be entitled @18% till the final settlement.

Mahesh Paryani

Mahesh Paryani (Expert)
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25 December 2011 Hi Tanvi

Partnership act does not state which clause do we put in. so it entirely depends upon the partners.

the above clause number a you can include the time limit for recovery of money.
include who will hire the valuer and who will pay the cost of valuer.
"asset existing in the partnership firm" to be more specific.
define asset
asset sold withen 6 month before the dissolution would be included in the valuation.

in point number b
both the parties cannot sell the property without concent of each other.
18% interest from which date.

i can give you more suggestion if you send me a copy of partnership
mahesh.paryani@gmail.com