Difference between Partnership Agreement and Partnership Deed

Partnership agreements and partnership deeds are legal documents that are used to define the terms and conditions of a partnership. Although these documents share a common goal, they differ in their approach to defining the terms and conditions of a partnership.

Partnership Deed

A partnership deed is a legal document that outlines the basic structure and terms of the partnership between the parties involved. This document typically includes the following:

– Name and address of the partners

– Name and address of the partnership

– Nature of the partnership business

– The capital contributed by each partner

– The profit and loss sharing ratio among the partners

– The rights and duties of each partner

– Management structure of the partnership

– The duration of the partnership

– The procedure for dissolution of the partnership

Partnership Agreement

A partnership agreement, on the other hand, is a more comprehensive legal document that includes all the terms and conditions outlined in a partnership deed. However, it goes a step further to define other aspects of the partnership, such as:

– The goals and objectives of the partnership

– The vision and mission statement of the partnership

– The roles and responsibilities of all partners

– Procedure for adding new partners to the partnership

– Procedure for terminating a partner`s involvement in the partnership

– The procedure for resolving disputes between partners

– The procedure for winding up the partnership

The partnership agreement is more detailed compared to the partnership deed, and it aims to provide a deeper understanding of the partnership structure and operation. This document is designed to protect the partners` interest while providing them with a clear framework for the partnership`s operations.

Key Differences

The key difference between partnership agreement and partnership deed lies in their scope. Partnership deed only outlines the basic terms and conditions of the partnership, while the partnership agreement covers a more extensive range of issues, such as dispute resolution, goals and objectives, and termination of partner`s involvement in the partnership. The partnership agreement is more comprehensive, detailed, and provides a more in-depth understanding of the partnership`s operations.

Conclusion

In conclusion, while both the partnership deed and partnership agreement serve as legal documents that outline the terms and conditions of a partnership, they differ in their scope. The partnership deed outlines the basic elements of the partnership, while the partnership agreement is a comprehensive legal document that covers all aspects of the partnership. Therefore, for a more comprehensive understanding of the partnership`s operation, it is advisable to have a partnership agreement in place.