Legal Flexibility in Contributions
The law does not mandate equal contribution. Partners are free to decide their shares based on their roles, capacities, and agreements.

• Contributions may be unequal in terms of money or assets
  
• One partner can contribute capital, and another expertise
  
• Profit-sharing does not have to match contributions
  
• Contributions must be mutually agreed upon and recorded
  
• The deed serves as legal evidence of the agreed-upon terms
  

Default Rule When Deed Is Silent
If the partnership deed does not mention contribution or profit-sharing terms, the default rule under the Act applies.

• Profits and losses are shared equally regardless of contribution
  
• Equal liability is assumed in the absence of a specific agreement
  
• Courts rely on behavior or oral agreements if deed is unclear
  
• Equal decision-making rights are presumed by default
  
• Can lead to disputes if one partner has contributed significantly more
  

Types of Permissible Contributions
Partners can contribute in more than just money, depending on the firm’s needs and their strengths.

• Cash or working capital
  
• Tangible property like land or machinery
  
• Intangible assets such as goodwill or brand value
  
• Professional skill or technical expertise
  
• Business network, contacts, or clients
  

Effect on Profit Sharing and Control
Contribution amount does not automatically determine profit share or control—these must be explicitly agreed upon.

• Profit-sharing ratios can differ from capital ratios
  
• Working partners may receive fixed remuneration or a bonus
  
• Capital-contributing partners may have passive roles
  
• Authority and voting rights are defined in the deed
  
• Clarity helps avoid future conflicts and misinterpretations
  

Importance of Partnership Deed
A well-drafted partnership deed ensures transparency, fairness, and legal enforceability of agreed contributions and roles.

• Records who contributes what and how much
  
• Defines how profits, losses, and liabilities are shared
  
• Helps during disputes, audits, or dissolution
  
• Protects the interests of both active and passive partners
  

Serves as a guiding document for future changes in structure