A contract between partners is the foundation of a partnership. It is the documented version of all the terms and conditions that the partners have agreed upon. It contains all the basic details of the partnership firm including its name, location, the names, rights, and obligations of the partners, their profit, loss, and capital sharing ratios.
A valid partnership agreement shall be signed by all partners in the presence of a notary. Additionally, the notary is also required to stamp the document under the seal of the government. The existence of a firm depends on the existence of the Partnership Agreement, in the absence of which the firm shall be declared null and void.