A binding legal document that states the formal rights of partners

• A. Articles of Association
• B. Deed of Partnership
• C. Memorandum of Association
• D. Partnership Agreement

Answer: (B)

In a partnership, the formal rights and duties of the partners are defined in a binding legal document, which is typically called a deed of partnership. This deed lays out how profits and losses are shared, what capital each partner contributes, who has decision-making authority, how partners are admitted or removed, and what happens if the business ends or disputes arise. Because a deed is a formal legal instrument, it provides enforceable rules that all partners must follow, giving clarity and protection to everyone involved.

Why this fits best: the deed of partnership is specifically the official, legally binding document that codifies the partners’ rights and obligations in a partnership. The other documents mentioned relate to companies rather than partnerships, and while a partnership agreement can cover similar topics, the question points to the formal, legally binding instrument used to govern a partnership, which is the deed of partnership.