1. Mutual Consent of Partners

Most decisions in a partnership firm are made through mutual agreement.

• All partners typically have an equal say in business decisions.
  
• Important matters require unanimous consent from all partners.
  
• Routine or day-to-day decisions may be handled by one or more partners.
  
• Major changes like admission or removal of a partner need full agreement.
  
• Mutual understanding and communication are key to smooth decision-making.

2. Role of the Partnership Deed

The partnership deed defines how decisions are to be made in the firm.

• It may authorize specific partners to make independent decisions.
  
• It outlines the voting rights and approval procedures.
  
• Provisions may include how conflicts or deadlocks are resolved.
  
• The deed can specify matters requiring majority or unanimous consent.
  
• Decisions inconsistent with the deed may be declared invalid.

3. Decision-Making by Majority

For general business matters, a majority of partners can decide certain actions.

• Majority rule is allowed unless restricted by the deed.
  
• The decision must relate to the ordinary business of the firm.
  
• All partners must be given the chance to express their views.
  
• Majority decisions cannot override the rights of minority partners.
  
• The process should follow fairness and transparency.

4. Authority of Individual Partners

Partners may act independently within the scope of their assigned authority.

• Each partner is an agent of the firm and may make decisions accordingly.
  
• Decisions made within assigned roles are generally binding on the firm.
  
• Acts outside the scope must be approved by other partners.
  
• Unauthorized decisions may be challenged or disowned by the firm.
  
• The deed may restrict individual authority in sensitive areas.

5. Conflict Resolution and Disagreements

Disputes in decision-making are handled through predefined procedures.

• The partnership deed may provide steps for resolving disputes.
  
• Discussion and negotiation are preferred methods.
  
• Mediation or arbitration can be used if disagreements persist.
  
• Courts may intervene in serious or unresolved matters.
  

Timely resolution ensures continuity and partnership stability.