Which binding document defines the formal rights of partners in a business partnership?

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

Answer: (C)

In a partnership, the binding document that defines the formal rights of partners is the Deed of Partnership. This written agreement lays out each partner’s role, capital contributions, how profits and losses are shared, who makes decisions, how new partners join, and what happens if a partner leaves or a dispute arises. It provides a legally enforceable framework that reduces ambiguity and helps prevent disagreements.

Documents like Articles of Association and Memorandum of Association are for companies, not partnerships, so they don’t define partners’ rights. A Partnership Agreement can serve a similar purpose, but the Deed of Partnership is the traditional, formal document used to bind partners and set out their rights and duties.