A deed of partnership is a document that contains an agreement, which details the rights and obligations of each partner participating in a venture. According to the San Francisco Gate, it has the force of law and is designed to guide the partners in the conduct of the business.
A deed of partnership provides basic information about the partnership such as, its business name, the name of the partners, and the type of business it is, plus the address. It outlines the amount of capital that each partner is to contribute, division of profits and payment of salaries, as well as time invested into the business by each partner. According to NIBusinessinfo.co.uk, the deed also includes, delegation of management tasks and an outline of the type of decisions that need collective agreement between the partners; details concerning changes to the partnership such as, how new partners are appointed and what happens if a partner dies or leaves the partnership.
As in all business contracts, a partnership deed must provide for the means of arbitration of disputes, as its main goal is to avoid expensive litigation of details that have not been fully worked out in the signed agreement. However, if a partnership does not have a deed, it will be governed by the terms of the Partnership Act.